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For the Keynessians, as for the classicals, there is money neutrality in the long-term for the theory of aggregate supply. However the short-run is a different issue. What happens in the short run as the money supply increases? What happens to the price level, the nominal wage, unemployment and real GDP in the transition from the short run to the long run?
John always uses exactly two pats of jam (J) on each piece of toast (T). if toast costs $0.25/slice and jam costs $0.10/pat, find John's (i) budget constraint (the equation) and (ii) best affordable bundle, if he has $18/week to spend on toasts an..
Imagine three little girls sitting in a circle, each wearing either a red hat or a white hat (no girl can see the color of her own hat). Suppose that all the hats are red. When the teacher asks if any student can identify the color of her own hat, th..
If the government wants to contract aggregate demand, it can ________ government purchases or ________ taxes.
Illustrate what is the interest rate. Jack and Jill both obey the two-period fisher model of consumption.
Changes in factors other than the price of a healthcare product will: options: A) Shift the entire demand curve. B) Shift the entire supply curve. C) Shift half of the demand curve. D) Shift half of the supply curve.
A mutual stock fund has grown at a rate of 16% compounded annually since its beginning. If it is anticipated that it will continue to grow at this rate, how much must be invested every year so that $60,000 will be accumulated at the end of 12 year?
Felix Jones, a recent engineering graduate, expects a starting salary of $65,000 per year. His future employer has averaged 5% per year in salary increases for the last several years. If inflation is estimated to be 4% per year for the next 3 years, ..
If economy has full flexible prices and demand unexpectedly increases you would expect that the economy’s real GDP would tend to Increase, Decrease. Remain the same? What happens when demand fluctuates lower than expected? What happens when demand fl..
Suppose that demand for good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?
Increase in the equilibrium price and a decrease in equilibrium quantity of the products made with eggs,consider the effect of that price change on the market for items such as mayonnaise, salad dressing and cake mixes, for which eggs are a key ingre..
You are shown four envelopes. Envelope A contains $1,500; envelopes B, C and D contain uncertain amounts of money but with the following probabilities: Envelope B -- $5,000 with a 10 percent probability, $1,500 with an 89 percent probability, and $50..
Indicate the direction of the shift in the supply curve or the demand curve for dollars; the factor causing the change, and the resulting movement of the equilibrium exchange rate for the dollar in terms of foreign currency if: 1. American-made cars ..
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