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For each of the following scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand.
(Hint: 2 are increases, 2 are decreases)
1. The United States government decides to increase the federal tax rate by 4% for all earners.
2. The Federal Reserve, the agency charged with regulating banking and monetary policy in the United States, decides to increase the amount of money available in the economy.
3. The newest release of the Consumer Confidence Index shows a steady increase in consumer confidence about the economy.
4. A manufacturing boom during the late 1990s has created an oversupply of tractors, a necessary implement in agricultural production.
Compute the price of the machine, which will make purchasing or leasing to be equally costly.
What if the monopolist charged P= $5.50 for the first 3 units of the commodity and P= $4 for the next 3 units What type of price discriminiation is this?
You shared good information about the definition of the labor force. However, per our discussion question, can you tell me is the student who graduated, but is looking for work a part of the labor force? Can you explain why or why not?
q1. the demand for tobacco is price inelastic. assume there is a drought that destroys a large portion of the tobacco
If the economy falls into a recession, the stock's return is projected at a negative 11.6 percent. The probability of a normal economy is 80 percent while the probability of a recession is 20 percent. Illustrate what is the variance of the returns..
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that al..
Advise the firm on how to plan production in the coming month if average income is set to increase by 12%.
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Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
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The state if Arizona decided to boost its own minimum wage rate by $1.60/hr. This pushed the wage rate earned by Arizona teenagers above the equilibrium wage rate in the teen labor market.
John Adams wrote his wife that his office is the "most insignificant office that was the invention of man."
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