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This discussion looks at perfectly competitive markets and the real world in more detail:
Is there a good or service you purchase currently that is sold in something close to a perfectly competitive market?
What leads you to believe this?
Identify and explain specific effects of price controls at given prices. Using the hypothetical information in the table on the market for gasoline, complete the following questions: Price of Gasoline (per gallon) Quantity Demanded
A country's long -run equilibrium price level has increased, but the position of its aggregate demand schedule has not changed. what has happened? what specific factors might have accounted for this event?
How can you justify the existence of government-granted monopolies for public utilities such as natural gas distribution and electricity in the light of traditional economic argument that the more competition there is, the more likely it is that an e..
What are the reasons for not including demand deposits as rate-sensitive liabilities in the repricing analysis for a commercial bank? What is the subtle but potentially strong reason for including demand deposits in the total of rate sensitive liabil..
This year, a competitor has developed a similar toy that has significantly reduced demand for the toy truck. Now the original manufacturer is deciding whether they should continue production of the toy truck. If the estimated demand is 100,000 tru..
Illustrate what would be a monetary policy prescription to reduce or eliminate deflation.
Assume that the Bank of China wishes to peg the rate of exchange of its currency, the yuan, in terms of the US dollar. In each of the following situations, should it add or subtract from its dollar foreign exchange reserves? Why?
Elucidate why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation.
List the various causes of inflation and determine if they are an injection or a leakage. Justify why you selected injection or leakage.
What is the real wage as determined by the price-setting equation and what is the natural rate of unemployment?
imply a lower standard of living in every of the three nations compared to the situation where they are united into a single new country.
The technology helps to grow productivity, which in turn frees up resources - permit interest rates to remain lower than otherwise possible. But i am not sure how increased productivity drives economic growth.
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