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1. What is liquidity? Why is money the most liquid of all assets?
2. Explain how the fed increases the money supply when it buys bonds in the open market?
3. What are the three reasons that people want to hold money balances?
4. What kinds of employment are associated with the natural rate of employment?
You went out to dinner one night and observed one of your patients drinking heavily. The next day the patient is to check into the hospital for a pre-scheduled surgery. Your colleague found out about this and stated the patient’s behavior was irratio..
Externalities. A neighbor has rented his house to students who like to party late into the night. I like to get to go to sleep early to make it to my 8AM classes. What are the conditions of an efficient resolution to this dispute?
In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
A firm produces both crayons and pencils in constant proportions (1/3 and 2/3 respectively). Its costs are C(q1;q2)=1000+10q1+5q2+9q1q2, where q1 is the output of crayons and q2 the output of pencils. Calculate its minimum efficient scale (MES) of pr..
College Degrees Required for Police Officers Many Police Officer positions being advertised today require the applicant to have a college degree even though the tasks of a police officer rarely call upon college course material. Why don’t police depa..
Determine whether each of the following, other factors held constant, would lead to an increase, a decrease, or no change in the level of real GDP demanded:
Compose a one page response to the question: On average, do unionized workers earn higher wages than comparable nonunion workers? Why?
Assume an open, mixed economy (C + I + G + X = real GDP) and an MPS of .2. Explain if it would be expansionary, contractionary, or useless to the economy to increase government expenditures by $50 billion and also increase taxes by $50 billion.
Make a table showing the value of marginal product for each screen from the first through the fifth. Illustrate what property is illustrated by the behavior of marginal products.
Okun’s Law shows the relationship between the ______. A. inflation rate and the unemployment rate B. the unemployment rate and real GDP C. price level and real GDP D. price level and the unemployment rate E. inflation rate and real GDP
One supply side measure introduced by the Reagan administration was a cut in income tax rates. Use an aggregate demand/aggregate supply diagram to show what effect was intended. What might happen if such a tax cut also shifted the aggregate demand cu..
In the simple Keynesian model, if output exceeds aggregate expenditures, According to the Keynesian analysis, as income increases, the marginal propensity to consume will rise. In the classical model, a self-regulating market would. According to the ..
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