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What happens to the price if the supply increases. What happens to the quantity if supply increases and demand decreases. What happens to price if demand increases followed by supply decreasing and
What is equilibrium GDP. What will equilibrium GDP equal if government expenditures increase 200. What will equilibrium GDP equal if taxes decrease 200? Why are the results different.
Why is equilibrium a desirable condition of the market. What factors move the market away from equilibrium. Explain why in U.S. agricultural markets, quantity supplied almost always exceeds quantit
Note that the monetary value of output in 1985 was $4010 billion in the United States and 1418 billion cruzados in Brazil. Calculate the velocity for the two countries in 1985. Why do you think the
What are the values of nominal GDP and real GDP in the current year. Explain the difference between the two answers in a.
What changes, if any, would you make to these tools at the next meeting of the Federal Reserve. Explain why and the benefits/drawbacks of this strategy.
what accounts for the relatively high unemployment rate of young workers. Why does the minimum wage seem to have the greatest impact on teenagers.
how would you interpret the slope coefficient. is the estimated slope coefficient statistically significant.
If the long run growth rate of real GDP(Y) is 2%, then at what rate would the quantity of money (or money supply) have to grow to meet this inflation target.
For the coming year, inflation in Brazil is expected to be 15% while the US inflation is expected to be 3%. Spot Brazil Real is 2.86BRL/USD. Based on relative PPP, what would you expect BRL/USD to
suppose that the foreign nominal rate on a similar instrument is 6% and expected foreign inflation rate is 4%. Based upon the real interest rates what is your forecast of the future value of the do
What factors will increase or decrease the level of international capital mobility between one nation and the rest of the world.
Explain the economic effects the rise in German interest rates put on the DM/FF exchange rate and what the German central bank (i.e., the Bundesbank) would have to do to keep the exchange rate fixed
An investor wants a real rate of return i (rate of return without inflation)of 10% per year on any projects in which he invests.If the expected annual inflation rate for the next several years is 6
What is the correlation among all of these, and the level of unemployment and spending therefore GDP. This does affect the economy of a country as well as the individual that live there.
Explain how cost-push inflation might prompt policymakers to take actions that subsequently cause demand-pull inflation. Explain how this demand-pull inflation could lead to another round of cost-pu
Inflation must be kept within target limits, three per cent or less. Can alternatives to traditional monetarist devices be identified in modern economies.
What is the base year. If the cost of a market basket in 2006 is $2,000, what is the cost of the same basket of goods and services in 2005? In 2009.
Why do Keynesian economists believe that market forces do not automatically adjust for unemployment and inflation. What is their solution for the stabilization of economic fluctuations.
How can inflation derail the economy from its growth path. Cite cases in the past where inflation derailed the U.S. economy from its growth path. Be specific.
What if stronger growth is the result of the aggregate supply curve shifting to the right. What should the Fed do in inflation continues to fall and eventually starts to become deflation.
What would social security have been in 2001 if the program had not expanded after 1955; i.e., if the only increases were due to inflation and population.
What effect would a period of rapid inflation likely have on the role of money as a store of value, and on people's attitudes toward money generally.
What is the difference between cost-push and demand-pull inflation. Which was the primary cause of inflation in the early 1970's. What type of inflation has the Federal Reserve been trying to preve
Why does the U.S. Treasury also have an incentive to issue these securities to help finance government deficits. Explain both these in detail for me, I would like to start by having a more clear def