Econ 214 Problem Set 4 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1‚ whereas interest-earning savings accounts and Treasury bills are not? A financial assest is included in the M1 money supply when it can be quickly converted into the physical form of money‚ such as dollars and coins. Interested-earning checkable deposits are included because it can be quickly accessible without limitations
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move the supply curve to the left. Answer No. 2 Full Employment: AD 2 1 100 180 AD 2 1 100 180 Economic boom : :1 AD1 2 1 80 200 AD2 140 AD1 2 1 80 200 AD2 140 Recession: P Y AD1 2 1 80 200 AD2 140 P Y AD1 2 1 80 200 AD2 140 Short Run and Long Run Aggregate Supply Curves Full Employment YP=140 P 2 1 LRAS YP=140 P 2 1 LRAS Economic boom 2 1 AS YP=140 2 1 AS YP=140 Recession: P Y 1
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Running Head: MACRO ECONOMICS Macro Economics Econ 214 Problem Set 3 Complete all questions listed below. Clearly label your answers. 1. Will increases in government spending financed by borrowing help promote a strong recovery from a severe recession. Why or why not? 2. Does fiscal policy have a strong impact on aggregate demand? Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand? Did
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Problem Set 1 Complete all questions listed below. Clearly label your answers. 1. The receipts and year of release of the five movies with the largest nominal box office revenues‚ along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release‚ convert the receipts for each to real dollars for the year 2010 (2010 CPI 218.1). Put the movies in order from largest to smallest real box office receipts. Movies
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Problem Set 5 Complete all questions listed below. Clearly label your answers. 1. What impact will an unanticipated increase in the money supply have on the real interest rate‚ real output‚ and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain. An unanticipated increase in the money supply will have a significant negative or positive impact on different areas of the economy. Real interest rate will decrease in the short run when money
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ECP 6705 – First Problem Set Fall‚ 2014 Name or Names: (if a group of two) 1. Write a memo to UWF COB Dean Tim O’Keefe explaining why you believe offering a tuition increase for the next semester MBA students will increase total revenue (assume that he has heard of elasticity‚ but is no expert on the subject). 2. Mentone Cabins recently reduced price by 20 percent and saw volume increase by 10 percent. Should the owners reduce price further
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One: (10 points) Tom leases a farmer’s field and grows pineapples. Tom hires students to pick and pack the pineapples. The following table sets out Tom’s total product schedule. Labor (students) Total Products (pineapples/per day) 0 0 1 100 2 220 3 300 4 360 5 400 6 420 7 430 1. Calculate the marginal product of the third student; 2. Calculate the average product of three students; 3. Over what numbers of students does marginal product increase? 4. When marginal product
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Problem Set 2 Name: __________________________________________ Problem Set 2 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 4. 1. The following table presents data for wages in the market for internet security professionals. (HINT: in the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers.) Wage Quantity Demanded Quantity Supplied $50‚000
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ASSIGNMENT 1 Busn 521: Managerial Economics This assignment is due on Friday Oct 17th‚ 2014. Problem Set 2 1. Pat and Kris are roommates. They spend most of their time studying (of course)‚ but they leave some time for their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza. a. What is each roommate’s opportunity cost of making a pizza
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PROBLEM SET 2 Name: ___________________________________ Problem Set 2 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 4. 1. The following table presents data for wages in the market for internet security professionals. (HINT: in the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers.) Wage Quantity Demanded Quantity supplied $50‚000 20‚000 14‚000 $60
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