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You observe that output is above full-employment output. Politicians are arguing about the possible reasons. One party claims that this is due to a drop in world oil prices. The other party claims that this is due to an increase in consumer spending. Using aggregate supply-aggregate demand graphs, explain (a) how each of the above reasons could cause an increase in output, and (b) what evidence you could use to determine which one of these had occurred.
Illustrate what is the correlation between all of these, and the level of unemployment and spending therefore GDP.
Make a table and graph of Crusoe's production function. Find out the Marginal product of labor for Crusoe at different quantities of labor.
Compute the coefficient of price elasticity for the price ranges given in the schedule and complete the first column of the table. What do you notice about the algebraic sign of the values you have just computed? Why is this so?
Draw an aggregate demand(AD)-aggregate supply (AS) complete framework that shows where the US economy in a full employment equilibrium& then where it is now.
Over what range of labor input is marginal product minute than average product. Illustrate what is happenning to average product as employment increases over this range.
Assume a 2 sector economy (where the two sectors are consumption and investment) where C= $100+ 0.9 Y and I=$50
Illustrate what are the dominant industries and or corporations, and who controls them. What is the trade relationship between your country and the United States.
Examine whether the raise would have a huge impact on hours worked. you have the resultsof studies conducted for three other companies.
If Tarzan also Jane are each nation willing to give-up on hour of patrol for 2 pounds of fruit, is the current allocation of Cheetah's time Pareto efficient.
If the Inflation rate were to accelerate the economy would be flourishing as there is a need for more people to do the work.
Compute the Conventional and the Modified BCR for this project. Should this investment be made.
In light of Ricardian model, how might you measure the claim by developing countries that they're at a disadvantage in trade
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