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A and B, two products, X and Y, and two inputs, L and K. You may use either Edgeworth Box diagram or perfectly competitive market system.
For each of the following changes, what are the short-run effects on the real interest rate and output? Assume that, when the economy is in disequilibrium.
So the Fed needs to increase the money supply, since with higher income, people's demand for real money balances will be higher." Draw and label the graphs.
What if the shock was really due to people's reduced expectations about their future income. Which variables did you forecast correctly, and which did you forecast incorrectly?
What is the slope of the leakage schedule? Also, if a bank has $5 in vault cash plus $200 in liabilities with a required reserved ratio of .20 and a desired excess reserve ratio.
How does the existence of money reduce the costs of making transactions relative to a society based entirely on barter?
When discussing the maximization of utility, regardless of whether you chose to work more hours or fewer when offered a higher hourly wage, you could not be wore off than you were at a lower hourly
Suppose a U.S. citizen deposits $10,000 in a foreign bank and the foreign bank uses the $10,000 to buy dollar-denominated assets in the U.S. Then: The U.S. has experienced a net capital outflow.
Which of the following is true for a small open economy with perfect capital mobility but false for a large open economy with perfect capital mobility?
What are the demand and MR oF CDW over the last couple of months? Over what range will changes in marginal cost have no effect on CDW's profit-maximizing level of output?
Consumption equals 15 billion, and investment equals 2 billion. What is the value of goods and services purchased by the government of Nemedia?
Total soft drink demand increased, and Pepsi took a larger share of the demand. Why is the equilibrium of this game different from that of a prisoner's dilemma.
Quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units?
Assume a perfectly competitive firm is producing 500 units of output, P = $7, ATC of the 500th unit is $6, marginal cost of the 500th unit = $7, and AVC of the 500th unit = $5. Based on this informa
Explain the effects of an increase in consumer spending on the short-run macroeconomic equilibrium. Explain the effects of an increase in exports on the short-run macroeconomic equilibrium.
Calculate the price elastcity of demand for coffee when the price decrease from R3.10 to R2.90. Inteprete the elasticity calculated in 1.
The model suggests that cutting the budget deficit may boost output, even in the short run. Discuss these propositions with the help of appropriately labelled diagrams.
What are the short-run equilibrium values of output, Y, the price level, P, and the unemployment rate, u? What are the long-run equilibrium values of these three variables?
A country has a floating exchange rate. Government spending now increases in an effort to reduce unemployment. What is the effect of this policy change on the exchange rate value of the country's c
Suppose that the economy is currently at the full employment position. Using the AS-AD and IS-LM models explain the short run and medium run impacts of a decrease in budget deficit.
Use the sticky-wage theory of aggregate supply to explain what will happen to output and the price level play in this adjustment? be sure to illustrate your analysis in a graph.
Equilibrium is inefficient because MRS and MRT are different. Show that a tax on the production of good 2 can eliminate the inefficiency of the monopoly.
What was the size difference between the two - the negative/positive GDP gap? If the multiplier was 2 in that period, what was the size of the economy's recessionary/inflationary gap?
Determine the optimal average cash balance for the person who earns $1000 per month (Y), can earn 0.5 percent interest per month (i) in a saving account, and has a trip to bank cost i.e. transaction
While there is an unlimited demand for discount fares, demand for full fares is estimated to be anywhere between 10 and 30. How many seats should be protected for full-fare passengers?