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Question: Predict the impact an unexpected decrease in the money supply would have on the following variables in the short run and in the long run.
a. the inflation rate
b. the unemployment rate
c. real output
d. real wages
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price of luxury boats is $1 million and 240 luxury boats a week are brough. now luxury boats are taxed at 20 percent..
Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?
You have calculated the expected NPV of project A to be $3,758 and that of project B to be $3,114. Can you be certain that you should recommend to your management to implement project A.
Various executive compensation plans have been employed to motivate managers to make decisions that maximize shareholder wealth. These include:
Fiscal policies are the actions of Congress on spending and taxing. (Note that this is different from monetary policy, which is the action take by the Federal Reserve to change the money supply.)
Take a look at the Productivity Growth Rate over the past twenty years and over last five years, and describe the macro economic implications such as Potential GDP, GDP growth and inflation,
Economic growth is driven by household savings being made available for capital investment. Describe the key aspects of the globalization of financial markets since 1980 that have helped drive growth in the world economy.
Question 9 - Net Domestic product is considered to be a better measure of welfare than GDP, since it adjusts for the fact that part of GDP must be devoted to replacing physical capital worn out during the course of the year. If we took this princ..
bill gets utility satisfaction from two goods x and y according to the utility function uxy lnx lny. while bill would
Comparing which is the current quote has the Japanese dollar appreciated or depreciated.
The Bertrand and Cournot oligopoly models differ with regard to whether they compete on price of quantity. The profits from each strategy are significantly different. Why?
Illustrate the potential problems of economic transition from a planned economy to a competitive free-market economy.
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