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Assume the short-run aggregate supply curve can be expressed algebraically as: Y = 4,500 + 3,000π and the dynamic aggregate demand curve can be written as: Y = 5,000 – 1,000π
a. Find the numerical value for the short-run inflation rate? Show your work.
b. Find the numerical value for equilibrium output in the short run? Show your work.
Using the data below, we are now going to use our supply/demand framework for US $ to model the movement in the euro per $ exchange rate between December 2007 (the very beginning of the Great Recession) and November 2008 (pretty much the height of th..
Suppose there are two candidates disputing election in a linear city defined on the interval [0, 1]. There is a continuum of voters uniformly distributed on the interval [0, 1]. Voters closer to the point 0 prefer more conservative candidates, and vo..
The questions on this homework deal with an economy called Economica. Calculate the economy-wide currency ratio. Because precision is very important with the multiplier and its components, round your final answer and any intermediate steps to THREE d..
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $8.00. In year two, the price of the same basket is $7.00. From yea..
A price-taking firm selling in a market with a price greater than the firm’s average total cost should:
Other things remaining the same, what would happen to the supply of a particular commodity if the following changes occur?
Title IX of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 appears to be driven in part by the Madoff Ponzi scheme. Indeed, af- ter the SEC’s investigations failed to detect the Madoff fraud (see Case 1.12), many sections of Ti..
If you fail to make your payments to TV Land, do they have a claim to your Calculate. Does TV Land or Calculate Land have to file a financing statement.
The economy is starting from a point of disequilibrium as there is a recessionary gap. Potential GDP is $600 billion and the recessionary gap is $50 billion. An economic shock then hits this economy and there is a sudden drop in the value of the Cana..
Gilberto is an owner of a professional sports team in a large league. To promote fairness, the team with the most losses in the league automatically gets the best new player to enter the league next year. Externalities are a shortcoming of the market..
The demand curve for a product is given by Qdx= 1,200- 3Px- 0.1Pz where Pz =$300. What is the own price elasticity of femand when Px =$140? Is demand elastic or inelastic at this price? what would happen to the firms revenue if it decided to charge a..
What do temporary changes in the tax code do for incentives? Does this encourage long term planning? Should the government encourage long term planning? Should the Government use tax policy to change behavior?
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