In a dynamic model, what three key assumptions are needed to make the prices of goods and services endogenous?
What will be an ideal response?
Assumptions needed are: (1) prices adjust slowly when the money supply changes; (2) in the long run, prices change proportionally with a change in money supply; and (3) in the short run, a decline in the nominal interest rate causes people to buy more goods and services, so their spending and incomes rise temporarily.
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Stiller Company owns a machine that was bought on January 2, 2011, for $376,000 . The machine was estimated to have a useful life of five years and a salvage value of $24,000 . Stiller uses the sum-of-the-years'-digits method of depreciation. At the beginning of 2014, Stiller determined that the useful life of the machine should have been four years and the salvage value $35,200 . For the year
2014, Stiller should record depreciation expense on this machine of a. $19,200. b. $44,400. c. $59,200. d. $70,400.
Innovation and use of new technology most closely align with which combination of operations and firm strategies?
a. Process Design, Customer Service b. Purchasing, Cost c. Logistics, Customer Service d. Product Design, Quality
Which of the following is NOT a function of decomposition?
A) Permit different parts of the system to be built at the same time by the same person B) Allow attention to be concentrated on the part of the system pertinent to a particular audience, without confusing people with details irrelevant to their interests C) Facilitate the focusing of attention on one area (subsystem) at a time without interference from other parts D) Break a system into smaller, more manageable and understandable subsystems E) Build different parts of the system at independent times and have the help of different analysts
A common characteristic of integer programming models is that they
A. are easy to solve graphically. B. produce the same answer and standard linear programming models. C. often produce multiple optimal solutions. D. have all of these choices in common.