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If the economy is headed into a recession with high unemployment, what would you want to do to supply of money and aggregate demand?
To execute this, what must be done to excess reserves of commercial banks and how would this be done?
What would you expect if inflation was very high?
What would you do to aggregate demand, money supply, and how would you do it?
Draw the isocost line corresponding to a total cost of $10,000 is: 50 L + 100 K. TC = w L + r K, where L is the quantity of labour, K is the quantity of capital, w is the price of labour, and r is the price of capital. And draw the isoquant curve on ..
Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last un..
Which of the following is a true statement about? self-interest as used in the study of? economics?
If a hard freeze eliminates premium coffee crop, illustrate what will take place to the price of premium coffee.
Hedgepeth Inc.’s net income for the most recent year was $16,885. The tax rate was 40 percent. The firm paid $3,976 in total interest expense and deducted $2,655 in depreciation expense. What was the cash coverage ratio for the year? Find the cash co..
An industry consists of a dominant firm with costs C(Qd) = Qd and 8 identical fringe firms, each with costs c(q) = 1 + q^2. Market demand is Q = 20 - p. What is the supply schedule for a fringe firm in the long run? Sketch the supply. (You would need..
How does the increase in money supply affect consumer spending and investment? How does it affect the firm or organization you work for? How do the Federal Reserve policies affect us as individuals (households)?
Suppose that a single firm monopolizes the market for coffee imports from Colombia into the United States. Supposed the firm is called Juan Perez. Juan Perez has production costs characterized by constant returns to scale such that AC=MC=40. Calculat..
The FOC and local SOC for the firm's optimization problem can be used to prove the law of supply, meaning exactly: if the firm supplies a positive quantity at the current market price, then at a higher price it will supply a larger quantity.
Find the SPNE of this game. Is there an outcome of the game that both parties prefer to any SPNE? Also find a NE for which the outcome differs from any SPNE outcome.
With adaptive expectations, what is the inevitable consequence of an active, expansionary monetary policy in the short and long run?
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