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One of the goals of macroeconomic policy is to reduce the severity of business cycles. Q. If the severity of business cycles were reduced, what would be the effect on each of the four types of unemployment and on the unemployment rate as a whole?
What is one significant consequence of fractional reserve banking Banks are vulnerable to "panics" or "bank runs." Banks can only lend an amount equal to its deposits. Banks hold a portion of their deposits in gold. Banks can serve the withdrawals..
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Among which of these methods of encouraging growth would you suggest to a newly industrialized economy.
As the research begins to come in about your expansion opportunities abroad, the marketing department has discovered that the price elasticity
Assume you are a business person with an opportunity to make more money by meeting with competitors and fixing prices, conduct which is illegal. The authorities will not discover that the prices have been fixed. In fact, the price rise could be sm..
Illustrate the difference among the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution.
What happens to the interest rate if the money supply increases from 20 to 30? Illustrate your answer graphically. What happens to the interest rate if nominal income increases by 10%? If the Federal Reserve Bank wants to increase the interest rate ..
Describe the total shortage associated with the price ceiling. Compute the full economic price. How much is the non-pecuniary price.
The town is debating two strategies for funding this cost: (1) requiring a sticker on every bag disposed of such that the total cost of the stickers for the average number of bags per household per year would be $30 or (2) including the $30 fee in..
In regards to commodity chains, does microsoft exhibit backward or forward integration That is, has it bought its suppliers or does it buy from independent producers (As far as forward integration goes, i do not think that it fits).
Job A pays $30,000 a year. Job B is completely identical in all aspects except it is located in an area that has a 10% higher cost of living. In order to compete, Job B would need to pay. This is known as a 2. Explain the difference between ..
Suppose someone tells you that, over time, free trade is helping capitalists and harming workers. What fact would you cite to challenge this statement?
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