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Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 6%, the growth rate of the velocity of money is 2% and that the real economic growth rate is 4%.
Now assume that oil prices increase. After the increase in oil prices, the inflation rate in the economy is 9%. Now assume that the federal government decides to increase government spending in order to combat the rise in oil prices. After the increase in government spending the total spending growth is now 14%.
1. After the increase in government spending, what is the growth rate of the money supply?
Amelia buys coffee for $1 per cup and tea for 50¢ per cup; every day she drinks 1 cup of coffee and 2 cups of tea. Bernard buys coffee for 50¢ per cup and tea for $1 per cup; every day he drinks 2 cups of coffee and 1 cup of tea. Can you determine wh..
The average cost of production _______ if there are scale economies, and ________ if there are scale diseconomies.
The relationship between the less- developed- countries and the developed countries in the evolution of international trade has always been a bit strained. Discuss this relationship, including policies adopted and /or advocated by each group to "help..
Distinguish between the resources market and the product market in the circular flow model.
If a high per-bag fee were charged for garbage collection, how would consumers respond? What can cities do to reduce the amount of garbage that goes into landfills?
In the aggregate expenditure model, assume that the consumption function is given by C = 800 + 0.8 (Y - TP), that planned investment. I. equals 200, and that the government purchases, G, and taxes, TP, each equal 200. Assume that there is no import o..
After 25 years explain how much larger is Country B's economy the Country A's economy. Why is the answer not 25 percent.
You are being given data on supply also demand for the whole marketplace also are being asked illustrate what effect that has on you as a small part of that marketplace.
In the aggregate expenditures model, if aggregate expenditures exceed real GDP, the economy will:
In a two firm market, let the total cost of producing a product be 2Qi, the inverse market demand be given by the function P = 20 - Q and the market quantity be equal to Q = Q1+Q2. Assume firms compete in quantities, what is the quantity for firm 1 t..
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
q. patricia is researching venues for a restaurant business. she is estimating 3 chief features that she considers
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