Consider an economy with a constant nominal money​ supply, a constant level of real output Y​ = ​, and a constant real interest rate r​ = ​%. Suppose that the income elasticity of money demand is and the interest elasticity of money demand is . a. By what percentage does the equilibrium price level differ from its initial value if output increases to Y​ = ​(and r remains at ​%​)?

You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?

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