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Using aggregate supply and aggregate demand analysis, discuss how the following will two events affect the aggregate level of output and the price level in the economy. Use just a SRAS curve (not the LRAS). You need to determine whether the AD or SRAS curve will shift, in which direction it will shift, and how this will affect aggregate output and the price level.
a. A hurricane that destroys half the supply of goods produced in Florida.
b. An increase in the money supply.
Maximizing profit for an economist is:
The nominal interest rate is 12% compounded semi-annually. What single amount on July 1, 2015 is equivalent to this cash flow system?
Discuss two distinct ethical issues that you will need to understand and respect as your business expands into your selected country.
Consider a facility that has a 30-year life, a replacement cost of $1 million, and an interest rate of 5%. Calculate the animalization factor. Show your work/ calculations using the formula. Based on the animalization factor, calculate the annual cos..
Given the short-run (SR) cost curve in the chart above for a firm in a perfectly competitive market, find the firm’s best output level and total profits when the market price is: a) $18, b) $13 c) $5 d) $3.
Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume that v=2 and that the inflation rate last period was 2%. Assume the natural rate of unemployment is 5.5%. The Sequester is ..
Suppose a person has $20 to spend on music and likes both rap music (R) and country music (C) with a set of preferences so that U=C^1/2R^1/2. Write down the budget constraint equation for him. Show his optimal consumption choice in a graph. Use the h..
Illustrate what entity establishes a cost ceiling and does it require government sanction for violators. Will it result in a surplus or a shortage.
Olivia knows that Popeye likes spinach as much as $3 in terms of money, he likes tobacco $1 in terms of money, and he dislikes potatoes as much as if he had to pay.
As asset is purchased in September and is being depreciated over 7 years using MACRS 200% Declining Balance depreciation switching over to Straight Line Depreciation, witht he mid month convention. In what year should the depreciation method be switc..
q1. explain why do some economists consider that better inventory control software as well as systems might help to
Explain four problems with the argument that trade protection is needed to protect American jobs. Describe the economic reasons why businesses use off shoring.
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