How is the equilibrium price determined? What happens if the
price is above the equlibrium price? What happens if the price is
below the equilibrium price?
Explain how the price of any financial instruments is
determined in general term?
b) Explain why capital market
instruments are riskier than money market instruments?
Is the following statement true or false, please justify your
answer?
“SEC regulations are intended to ensure that investors have full
and accurate information available when making their
investment decisions”
Respond to each of the following questions:
1. Explain how price and output is determined in a market economy
free of government interference.
2. Assume the government decides to institute a price ceiling in
the aforementioned market. Discuss: 1) what a price ceiling is and
include an example; 2) the change in the prevailing price and
output; and 3, the concept of economic surplus and the impact on
economic surplus due to the price ceiling.
3. Enacting price controls, either...
Using wage- and price-setting relations, explain how the natural
rate of unemployment is
determined and how it is different from the cyclical
unemployment?