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During the 1990’s, the U.S. economy experienced strong growth, full-employment, and very low inflation rates. How could you explain this, using the AD/AS model? In other words, what shifts in AD and/or AS would explain this outcome? Think about this not just in terms of AD and AS, but also in terms of the specific changes that can lead to shifts of those functions.
Suppose the quantity of good X demanded by individual 1 is given by X1 = 10 ?? 2PX + 0:01I1 + 0:4PY and the quantity of X demanded by individual 2 is X2 = 5 ?? PX + 0:02I2 + 0:2PY a) What is the market demand function for total X (= X1+X2) as a fun..
Illustrate for the 100 new homes will be within $10,000 of the population mean.
If the annual real interest rate on the loans is 6%, explain how many car companies will buy a new car assembly machine.
Which of the following is the best example of a monopoly?
A monopolistically competitive firm has the following short-run inverse demand and cost schedules for a particular product: What would happen to the firm’s demand and profit (or loss) as the firm moves toward the long run? Suppose in the long run, th..
Other things held constant, consumer surplus decreases as:
What makes a social science explanation different from methodological individualism? How would social scientists explain why American men wear short hair, while women wear their hair long? How would a methodological individualist explain this?
The marginal revenue generated for the monopolist by the 13in unit of its product is $6. What is the market-clearing price for the monopolist's product when 13 units are supplied to the market?
Draw and explain the continuum of precariousness that we developed in class. Explain why this diagram may only apply to certain people. What would the continuum look like for a different group of people?
Do you see our communities growing closer together or further apart. One page double spaced.
By how much will the quantity of Federal funds have to change for the equilibrium to occur at the new target rate?
Suppose that after hurricane Irene, the average income in Cape Charles, Virginia decreased by 14%. In response to this change in income, suppose the demand for steak in Cape Charles decreased by 4%. What is the income elasticity of demand for steak?
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