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What is the equation of exchange? Use the equation of exchange to determine by how much the price level increases if the economy is at full employment, velocity is constant, and the money supply increases by 7.6%. Based on our class discussion, does an increase in money supply always directly lead to and increase GDP when the economy is not at full employment? Explain.
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
Identify the right fiscal policy that should be followed: contractionary or expansionary - explain why this fiscal policy should be used.
Is a monopolist subject to any competitive pressures? Explain. Would an unregulated monopolist have an incentive to operate and produce efficiently why or why not 2-)Are the following statements both correct Are they inconsistent with each other a..
Illustrate the point price, income, also cross elasticities at the present values. Interpret your answers, saying how much a 1% change in each variable impacts demand.
Master Card has a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceles..
Transportation providers often make round trips between a pair of cities, but the demand for transportation between the two cities is likely to differ. Show on a diagram how the equilibrium price of transportation in each direction is related to the ..
What factors led to the mortgage default crisis How did mortgage defaults affect banks involved in mortgage lending and mortgage investing Securitization TARP What do these mean How did mortgage-backed securities spread losses during the mortgage ..
Using your own words, define market imperfections. To support your definition, include at least two examples. Do not include the examples from the book create your own examples.
As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves
Explain how one might interpret periods where these measures are significantly different from each other as periods during which supply shocks occurred.
What are the components of GDP, and how does energy consumption enter each of these components? How would changes in energy prices, such as oil price shocks, possibly affect GDP growth? Please explain the related impacts on inflation and unemploym..
Illustrate what are the dividend payout ratios for each firm. What are the expected dividend growth rates for each firm.
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