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Imagine that the central bank of an economy with unemployment doubles its money supply. In the long run, full employment is restored and output returns to its full- employment level. On the (admittedly unlikely) assumption that the interest rate before the money supply increase equals the long-run interest rate, is the long-run increase in the price level more than proportional or less than proportional to the money supply change? What if (as is more likely) the interest rate is initially below its long-run level?
You are the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y.
From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium?
The Fed’s decided to maintain its low interest-rate target in the face of a rightward shift of theAD curve in the late 1960s which led to an inflationary equilibrium.
Suppose all the competitve firms collude to form one single monopoly firm. (Collusion changes neither the demand nor the cost conditions in the industry.) Discuss the economic effects of the change in market structure.
Describe "modern economic growth" and describe the institutional structures needed for an economy to experience it. Identify the general demand, supply, and efficiency forces that give rise to economic growth.
EYEWITNESS TESTIMONY. A man was struck by a speeding taxi as he crossed the street. Aneyewitness testified the taxi (which did not stop) was blue. The man sued the Blue Cabcompany for his medical expenses. The city has only two cab companies, Blue Ca..
Assume that all consumers have identical demand curves for local telephone service, and the producer of such service is a monopoly. Compare price, output, profit and consumer surplus when (a) the monopoly set a uniform price fir the product. (b) t..
What sectors of the labor market are forecast to be the strongest in your region- locality What advice would you give young workers who are preparing to enter the workforce in a few years
within the discussion board area write 400-600 words that respond to the following questions with your thoughts ideas
assume that country a has a population of 500000 and only produces one good-cars. country a produces 100000 cars per
Analyze the economics of New Orleans in light of the above parameters and develop your own Cost-Benefit Analysis (CBA) for rebuilding.
1. i am risk avers and trying to maximize my expected value of c0.5 were c is my fortune. i have 50.000 in cash and art
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