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Problem: Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? What should the Fed do if it wants to stabilize aggregate demand? If the Fed does nothing, what might Congress do to stabilize aggregate demand?
(a) A shop manager's annual gross salary is £29,400. A bonus of 3½% of the monthly gross salary is earned and paid in October. Deductions from salary in October are Income Tax and National Insurance. National Insurance deduction in October is 6¾% ..
What does it cost you to sleep through one of the 30 lectures in a course for which you paid $2000 in tuition? Do students put more effort into courses for which they have to pay higher tuition to take the course? Explain.
What is the equilibrium price of a box. Is this the long-run equilibrium price. Expalin how many firms are in this industry when it is in long-run equilibrium.
Consider the following infinitely repeated model between two firms. Each period, the firms earn profits of 10 if they successfully collude. If a firm deviates from the agreement, it earns 15 in the period in which it cheats. In each period that th..
All stratified societies have groups of individuals that do not produce, but still receive a ‘cut' of the social surplus. How does Diamond (in his book) argue that these ‘privileged' individuals manage to convince productive members of society to ..
Discuss how the aggregate expenditure function shifts in response to changes in each of time following variables:
From the e-Activity, if you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products. Evaluate the factors involved in making decisions about pricing tobacco products indicating which would be the most influential..
Sketch a domestic supply and demand diagrams for a product in which the United States does not have a comparative advantage.
Given the above information, what is the marginal propensity to consume? Show your work and provide the general formula for the MPC. Given the above information, what is the marginal propensity to save? Show your work and provide the general formul..
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce most effectively and efficiently, is known as.
How were the procuder price paid and the consumer price paid affected? How was the producer profits affected?
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