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1. What is the equation of exchange and velocity of money? Explain the quantity theory of money and its relationship to NOMINAL GDP. What happens in the long-run when the money supply (MS) increases? What if LRAS and MS grow at 3%? What if velocity varies?
2. What are targets for MP growth? What were the targets before 1982? After 1982? What caused the Fed to change targets? What if the Fed targets an interest rate below equilibrium interest rate (note: nominal i= real r+expected inflation) like the 1970s?
draw a supply and demand graph to illustrate the consumer surplus that occurs when the market is in equilibrium
What does Autor mean by "polarization of job opportunities?" Illustrate what is the primary cause of this polarization.
Suppose that the city of Cool currently levies a property tax for public safety at a rate of one percent of taxable value on a base of $10 million of taxable property. If the price elasticity of demand for public safety in Cool is -0.2, calculate and..
Let’s say that there are many non-traded goods relative to traded goods. You are comparing the income of a rich country to the income of a poor country. For the poor country, do you expect PPP-adjusted income to be higher or lower than income calcula..
For each firm within an industry, T = X(X - 1)2 + 25X; where T is the long-run cost of the firm, and X is the firm's level of output. For the industry as a whole, Y = 34 - p; where Y is total consumer demand for the industry's product, and p is the p..
Jack's construction company is considering the purchase of new equipment at a cost of $10,500; with an estimates salvage value of $500 and projected useful life of 4 years. Determine the straight-line (SL), sum of year's- digit (soyd) and double decl..
Which of the following is NOT a possible way for a price-fixing scheme on potatoes to fall apart?
At the intersection of the short run aggregate supply curve (SAS), the aggregate demand curve (AD), and the long run aggregate supply curve (LAS) all occurring at the same point, the economy is:
Health insurance companies are oligopolies, and one of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Discuss in relation to the policies and practices of health insurance companies.
Despite its political popularity, the overwhelming majority of economists are not in favor of a Constitutional amendment that requires the federal government’s budget to be balanced every year. Utilizing the concepts from this weeks' readings, explai..
Explain the difference between absolute advantage and comparative advantage. Why is international trade theory based on the latter? Be sure to contrast trade theory with the earlier Mercantilist period. What was the shortcoming in Ricardo’s early tra..
What is the amount of five equal annual deposits that can provide five annual withdrawals, where a first withdrawal of $1500 is made at the end of year six and subsequent withdrawals increase at $100 over the previous year's, in the interest rate of ..
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