5. Suppose that this year’s money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $8 trillion.

a. What is the price level? What is the velocity of money?

b. Suppose that velocity is constant and the economy’s output of goods and services rises by 10 percent each year. What will happen to nominal GDP and the price level next year if the Fed keeps the money supply constant?

c. What money supply should the Fed set next year if it wants to keep the price level stable?

d. What money supply should the Fed set next year if it wants inflation of 5 percent?

Why do we see government interventions in the markets despite the fact that equilibrium price set by the free market is in fact the most economically efficient point in the market?

How can a business-level strategy of (a) low cost and (b) differentiation offer some
protection against competitive forces in a company’s industry

In a well worded paragraph answer, What has been Canada's main imports and exports over the past ten years?

In a well worded paragraph, discuss Canada's economic growth over the past ten years.

1) When aggregate price level in the economy falls, then the interest rate in the economy falls, which leads to an increase in investment expenditure in the economy. This phenomenon is called:

A) the wealth effect B) the interest rate effect C) the exchange rate effect D) the investment effect

2)The Quantity Theory of Money can be used to explain why:

A) SRAS curve is downward sloping B) SRAS curve is upward sloping C) AD curve is downward sloping, AD curve is upwards sloping

3) The Misperceptions Theory can be used to explain why:

A) SRAS curve is downward sloping B) SRAS curve is upward sloping C) AD curve is downward sloping, AD curve is upwards sloping

4) The _______ curve will shift ______ if there is a discovery of a new huge coal mine.

A) SRAS; right B) LRAS; right C) SRAS; left D) LRAS; left

5) Okun’s Law states that an extra unit of unemployment will lead to a 2 percent decrease in _______.

A) output B) price C) wages D) CPI

6) The Phillips curve is _____________ in the short-run:

A) upward sloping B) vertical C) horizontal D) downward sloping

Over the decades trade volume has increased due to reduction in tariffs, increased trade agreements, and subsidies among other trade enhancing measures. Gerber (2018) observed that the trade system has established trading rules and reduced tariffs under the GATT and WTO umbrellas. Although there has been significant reduction in tariffs and trade barriers there are still advances to eliminate tariffs even further. One might argue that such a move would only have diminishing returns to trade negotiations and a minor impact on GDP. Why would nations then continue to desire further market openings? Please respond to either following and use examples where applicable: NB: You can choose to respond to 1 or 2 but 3 is mandatory. So, in total respond to at least 2 topics, 3 being one of the 2 topics. Cite at least three reasons why economists trade openings. Explain why costs to consumers of a tariff or quota are greater than the net welfare costs to the nation. Which industries are more heavily protected in the United States and Japan? Are high income or low-income nations more affected by American and Japanese trade barriers? Explain.

I need a 6-7 min persuasive speech about the negative effects of pollution today

Assume a reporter said, “Today the Fed lowered the federal funds rate from 5.5 percent to 5.25 percent,” a more specific account of the Fed’s action would be as follows:

1. I propose to you the following gamble: I flip a fair coin, and if it is heads, I give you $5. If it is tails, you give me $6. What is the expected value of this gamble?

2. So you correctly surmised that question 1 was a bad gamble. How about the following? You have a utility function of U = X0.5, where X is your wealth. You currently have $100. I propose this fair coin flip: If it comes up heads, I give you $101, raising your wealth to $201. If it comes up tails, you give me your $100, lowering your wealth to 0. Do you take the bet? Explain, including a discussion of the fact that the EV of this bet is positive.

3. Use words to describe the concept of certainty equivalent.

4. What do you think about prospect theory? Significant improvement on expected utility? Or just some people have weird attitudes towards risk, and risky outcomes?

Consider two economies that are identical in all dimesions -- the same population, same saving rate, the same production function, etc, -- except for the fact that one has a level of productivity that is twice as high as the other, that is A^h = 2A^l . Assume both economies are in their steady states. what is the relationship between the levels of income per worker in these two economies?

A Nash equilibrium in a game is

The prisoners’ dilemma game

Suppose that each of two firms has the independent choice of advertising its product or not advertising. If neither advertises, each gets $10 million in profit; if both advertise, their profits will be $5 million each; and if one advertises while the other does not, the advertiser gets profit of $15 million while the other gets profit of $2 million. What is the likely outcome if the firms could successfully collude? (Hint: create the payoff matrix for yourself.)

Suppose two companies own adjacent oil fields, beneath which is a common pool of oil worth $30 million. For each well that is drilled, the company that drills the well incurs a cost of $3 million. Each company can drill one or two wells. Firms’ revenues are proportional to their share of the total number of wells drilled; for example, if three wells have been drilled total of which one firm has two, it gets two-thirds of the oil revenues, or $20 million (gross). What is the likely outcome of this game if each company pursues its own self-interest? (Hint: create the payoff matrix for yourself.)