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1. Why is money neutral in the real business cycle model?
2. How can the real business cycle model explain the behavior of the money supply over the business cycle?
Do you agree? Why, or why not? Would you agree with a qualified version of George's claim? If so, what qualifications would you add?
What does the acronym SMEAC stand for, and how does it apply to computer investigations?
Suppose the equation for th LM curve is Y=13500+100r. Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate, the interest rate that the Fed controls.
What are the three questions that must be answered in order to determine the consumers' willingness to pay in a mixed market of cars with both Lemons and plums
Beatrice has calculated the fixed costs for the Café are $18,000 per month and each meal costs $4.50. Will profits go up or down as a result of the price cut? By How much?
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units. What is the marginal c..
Zero economic profits but positive accounting profits
Suppose that Amber's demand for gasoline is given by G = 1000 - 200PG, where G stands for gallons of gas and PG represents the price of gas. a. Suppose gas sells for $2 per gallon. What is Amber's consumer surplus
Advanced Analysis, let MUa=z=10-x and MUb=z=21-2y, where is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B.
Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the student recreation center, which pays $6,000 per year.
a. Calculate the average product of labor, APL and the marginal product of labor, MPL. b. If workers at the firm are paid a competitive wage of $100 and the product is sold for $200 each, what is optimal level of labor usage and what is the maximu..
What is Q if the price level is 120? Suppose that Q in your answer is the full-employment level of output. By how much will Q increase in the short-run if the price level unexpectedly rises from 120 to 132.
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