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Suppose government spending increases. Would the effect on aggregate demand be larger if the Federal Reserve held the money supply constant in response or if the Fed were committed to maintaining a fixed interest rate? Explain.
a) How many pairs of shoes will Zapateria produce if the market price of shoes is $70 a pair b) What is the total profit Zapateria will earn if the market price of shoes is &70 a pair c) Should Zapateria expect more shoe stores to enter this market W..
If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event..
Supposed the USA and Canada are considering to trade. Assume there are only two goods in the economy; wheat and corn. USA 4 (units of wheat), 2 (units of corn); Canada 5 (units of wheat), 8 (units of corn). In this case, which country should produce..
Explain why is the "1 free" free to the buyer but not to society. At which point if any should the government regulate such promotions like these.
You are asked by the business editor of the Yuk Gazette to predict the events of the next few months. By using the data given, make a forecast. (Assume that investment is constant.)
Which of these would cause the demand curve for bison (American buffalo)
Explain the general progression of market structures. If you were to begin a brand new market, what is your market structure and then what might happen?
Find out the equilibrium market price. Find out the profits of the leader and the follower
Describe what happens to price of a bond that pays a fixed percent of the face value every year when interest rates in the economy rise.
A spike in unemployment rate - the largest in more than 2-decades - increased new concerns Friday that a weak labor outlook, high oil prices and continuing woes in housing and credit markets are leading the United States economy into a painful recess..
A new type of robot is invented, resulting in increased productivity across all industries and the U.S. Federal Reserve increases its money supply. What happens to the U.S. economy and the Canadian economy?
In addition to depending on disposable income, suppose household consumption were also a function of the interest rate. In particular, assume that households consume more (i.e., save less) when the interest rate falls. Assume prices are fixed in t..
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