Questions from Macroeconomics


Q: What does it mean for a central bank to act as lender

What does it mean for a central bank to act as lender of last resort?

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Q: Tina is the sole owner of Tina’s Lawn Mowing, Incorporated (

Tina is the sole owner of Tina’s Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM’s equipment depreciates in value by $125,000. TLM pays $60...

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Q: (This problem requires the use of calculus.) Consider a Cobb

(This problem requires the use of calculus.) Consider a Cobb–Douglas production function with three inputs. K is capital (the number of machines), L is labor (the number of workers), and H is human ca...

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Q: What makes the demand for the economy’s output of goods and services

What makes the demand for the economy’s output of goods and services equal the supply?

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Q: To increase tax revenue, the U.S. government in

To increase tax revenue, the U.S. government in 1932 imposed a 2-cent tax on checks written on bank account deposits. (In today’s dollars, this tax would amount to about 34 cents per check.) a. How do...

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Q: Use the Keynesian cross model to predict the impact on equilibrium GDP

Use the Keynesian cross model to predict the impact on equilibrium GDP of the following. In each case, state the direction of the change and give a formula for the size of the impact. a. An increase i...

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Q: In each of the following scenarios, explain and categorize the cost

In each of the following scenarios, explain and categorize the cost of inflation. a. Because inflation has risen, the J. Crew clothing company decides to issue a new catalog monthly rather than quarte...

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Q: Define the terms real variable and nominal variable, and give an

Define the terms real variable and nominal variable, and give an example of each.

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Q: Here is a table similar to Table 6-2 (but

Here is a table similar to Table 6-2 (but in alphabetical order) for the currencies of four imaginary nations. Use the theory of purchasing-power parity to fill in the blanks with a number or â&...

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Q: Consider an economy with two sectors: manufacturing and services. Demand

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm = 200 -6W m Ls = 100 - 4Ws where L is labor (in n...

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