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1.Explain how each of the following events will influence the demand or supply of red wine, and predict the change in equilibrium price and equilibrium quantity.a. A major health study finds that the antioxidants in red wine may help prevent heart diseases.b. The number of wineries increases.c. Personal disposable income of consumers decrease.d. It is expected that future prices of wine will be higher.e. A big increase in wages occurs for the workers in the wine industry.2. Use the data below to compute answers to the questions that follow.ITEM Amount in billions of Dollars.Consumption expenditure 390Government expenditure 110Imports of goods & services 40Interest and investment income 52Profit of corporations and governmententerprises. 80Income from farms and unincorporatedbusinesses 50Gross investment 180Export of goods and services, 55Wages, salary and supplementary labour income 378Capital consumption allowance 60Indirect taxes less subsidies 75a. Use the expenditure approach to calculate GDP.b. Use the income approach to calculate GDPc. Calculate net domestic product ( At factor cost )d. compute net investment and net export.3. If the civil war decreases labour productivity in Syria, explain what will happen to the followinga. Potential GDPb. Employmentc. The real wage rate.
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