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Suppose that the reserves requirements for checking deposit is 10 percent and that banks do not hold any excess reserves. A. if the fed sells $1 million of government bonds,what is the effect on the e
Assume the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this change any policy changes you discuss
A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but are operating below their minimum efficient scale. Explain the long-
If the marginal product of capital net of depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labour-augmenting technological progress equals 2 percent
If the production function is y = √(k), what is the steady state value of y in the Solow Growth Model with labour-augmenting technological progress at rate g, population growth at rate n and
the number of the world-wide wireless phone subscribers will soon reach the 1 billion mark. In the U.S. alone, the number of wireless subscribers is projected to grow by almost 17 million subscriber
According to some translations, Nobel laureate Albert Einstein once said, " God does not play dice with the universe." Does this mean that a profit-maximizing firm would never use something like dic
now suppose that tastes in art change, and art collectors decide that mona lisa is not such a great painting after all. draw a new diagram showing the effect of this change in tastes on the market f
describe the beliefs that Keynesian and classical economists hold about the role of the government in managing the economy and the business cycle, and the foundation and reasons for these beliefs
What, in your opinion, has caused the recession, and how does your explanation fit within the AD-AS model? For example, please indicate whether the cause(s) that you describe resulted in a shift of
The aggregate supply (AS) and aggregate demand (AD) model describe the condition of the overall economy; this model is used to predict changes in the price level and output from external shocks to t
Amount of Beef or Computers Produced by One Worker in a Day Canada Japan Beef 6 5 Computers 2 4 What are the limits of the terms of trade Specifically, when is Canada willing to
Compute the profit-maximising monopoly quantity, price, and profit from serving this single consumer if Barry's Bar charges a constant price per drink rather than using some other pricing scheme. Wh
Many people regularly commute from the suburbs to downtown Pleasantville. Due to traffic congestion, the trip takes 30 minutes when you travel by highway but only 15 minutes when you go by side stre
In an effort to reduce their total costs, many companies are now replacing paychecks with payroll cards, which are stored-value cards onto which the companies can download employees' wages and salar
Suppose you are asked to evaluate a policy that addresses urban smog problem in the Chicagoland area. This policy is one of the several ozone-reducing policy options evaluated using cost-benefit ana
what is the typical pattern of saving for an individual over his or her lifetime what impact does this behavior have on an individual's lifetime consumption pattern what impact does the behavior hav
How would the law of motion change if the government introduces a 30% tax on all sources of income (wages, capital payments, and profits), and the revenue is used every period to purchase non-durabl
Assume that firm #1 is the Leader. For this firm, calculate von Stackelberg profit maximizing level of output. Calculate the market price in von Stackelberg equilibrium and compare it to the Cournot
If CS knew JL were going to build 100 units of capacity, how much would CS want to build If CS knew JL were going to build x units of capacity, how much would CS want to build (that is, what is CS&i
Assume that two firms merge. E.g., Firm 1 decides to buy Firm 2 and shut it down. Assume that the merger does not change marginal costs. Calculate Cournot-Nash equilibrium profits for each active fi
Discuss how the two cases illustrate the major theme of this text: Changes in the macro environment affect individual firms and industries through microeconomic factors of demand, production, cost,
With the unemployment salary at an hourly rate of $7.25 do youbelieve that this helps our economy, does it hurt oureconomy Should it be higher as there are other states andcountries that have a high
Discuss the role of corruption in the modern economy. Give specific examples of instances of corruption duringa) S&L crisis and the recession of 1991 b) Enron and the recession of 2001 c) Subprime
The demand for a product can change due to manyfactors. Distinguish between a change in demand and a change inquantity demanded. What are the determinants of demand What arethe determinants of suppl