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Explain why an increase in export expenditure might temporarily result in the economy operating above potential GDP. Explain why this is temporary. If the government considers that the level of inflation associated with the adjustment of the economy back to potential GDP is too high, how might it act to moderate the outcome?
Which theory of regulation suggests that regulatory outcomes reflect the desire of regulatory agencies to increase their own budgets and power more than they reflect any interests of business or the public?
Analysis of Pricing: You manage MBA Deli which sells meals at a price of $6 each. The average number of meals sold per month is 7,000. MBA Deli would like to increase its sales and profits. The MBAs running the Deli, know that if price is lowered, th..
i firms often face the problem of allocating an input in fixed supply among different products. nbspfind the optimal
If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if the price of shoes decreased. consumer incomes increased.
What are the differences between economic and accounting concepts of cost? How would you manage the costs associated with a value-creation activity? How do costs of operations relate to the strategy of the organization?
What's the difference between real GDP and real GDP per capita? Which one is more important? Why? What are your thoughts on the Affordable Care Act (normally referred to as Obamacare), and its impact on unemployment/employment and economic growth? Ho..
What is an equilibrium price and quantity? Imagine that as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium. How will the new equilibrium alter output? How will it alter the pr..
In the last 6 months the European Union has undergone a significant economic slowdown with corresponding declines in both output and income (assume the exchange rate remains constant). The European Union is a significant trading partner of the U.S.
Wedding Dresses Stores that sell wedding dresses do not typically permit photos, and do not have tags in the dresses that would identify the manufacturer and style type. What is the purpose of these rules? Suggest one other way of accomplishing the s..
The most anyone is willing to pay for another purse is $30. Currently the price of a purse is $40, and the cost of producing another purse is $50. The marginal benefit of a purse is
At the 2014 G20 conference in Canberra, U.S. Secretary of the Treasury, Jack Lew, warned that the euro zone economies face a decade of economic stagnation unless their economic policies change and that the “world economy could not afford a European l..
A monopoly has a demand curve of D (p)=150-3P. If marginal cost is equal to 2, what is the profit maximizing quantity?
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