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Suppose that Florida adopts a new state policy in which the government compensates orange farmers for all fixed costs, but the policy does not affect their variable costs of producing oranges. The graphs below show the costs faced by individual orange farmers in Florida and the market conditions. The only effect of the new government policy is to lower the ATC for farmers from ATC to ATC’. All farmers are identical and the market demand is constant. Show how this new policy affects the market demand and supply of oranges in the short-run and show the short-run profits and output of individual farmers in a graph.
Suppose a country has net exports of 40, transfer payments of 20, net investment income of -15, and a balance of payments surplus of 10. Find the country's current account balance and capital account balance.
Illustrate what happens to the demand curve for turkey in the u.s. In November. What happens to the curve after the holiday. Why do these changes occur.
q.a firm sells its production in a perfectly competitive market at a fixed cost of 10 per unit. it buys 2 inputs l as
Why is aggregate demand curve downward sloping? (Interest-rate effect, foreign purchases effect and real-balances effect be able to explain logic behind each of these) What are the determinants (shifters) of AD curve. Be able to determine the equilib..
If 100 % of deficit is financed by sale of securities to federal agencies, illustrate what happens to amount of debt held by public Illustrate what happens to level of gross debt.
Assume that the economy is currently at potential real GDP. Which of the following would put the economy in an inflationary gap? A) temporary increase in wages B) greater stock market wealth C) higher business taxes D) higher marginal taxes
Compute nominal GDP, real GDP also the GDP deflator for each year, using 20010 as the base year.
Suppose that you test the Linder hypothesis by comparing Germany’s absolute difference in per capita income from each of its trading partners with the size of Germany’s total trade with each respective partner. You find a strongly negative correlatio..
q1. in may 2011 the average price of gasoline in the united states was 3.76 per gallon and consumers bought 5 percent
33 % of monetary base is held outside ?nancial institutions. Where do you think this portion of the monetary base is held exactly? Under what conditions might it return to the banking system?
Consider the relationship between the Mexican peso (MXN) and the Canadian dollar (CAD). Let the exchange rate be defined as Mexican pesos per Canadian dollar. For each of the following cases, illustrate the effects on the FX market and state how the ..
Bud has very limited store space and has decided to limit his product line to one brand of beer, choosing to forego the snack food lines that normally accompany his business.
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