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Integrating both the IS/LM and AD/AS model, graphically illustrate the SHORT and LONG run impact of implementing a contractionary monetary policy on a closed economy’s equilibrium interest rate, output, unemployment, and price level. Assume that the economy was initially operating at the “natural level of output”.
The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms.
Where does this short-run aggregate supply curve intersect the long-run aggregate supply curve that you drew? Just need an explanation of what it woudl look like?
A monopolist has an inverse demand curve given by p(y) = 12 - y and a cost curve given by c(y) = y2. What will be its profit maximizing level of output? Suppose the government decides to put a tax on this monopolist so that each unit it sells has to ..
No additional working capital is needed and no working capital will be returned. If your tax rate is 35% and you require a 14% return on your investment, what bid price should you submit?
Assume that the equilibrium price of DVD players increases and the equilibrium quantity increases. Illustrate which of the following best fits the observed data.
Discuss which of the following activities will contribute in the U.S. GDP. Support your responses with appropriate rationale. A grey market includes distribution channels, which are legal but are unofficial,unauthorized, or unintended by the original..
Assume that the train ticket price is $100 and 1000 passengers use train per day. 2000 passengers use buses and 5000 passengers use their own car. What can you say about the elasticity and cross price elasticity of these three transportation modes? W..
Using the method of the Lagrange multiplier calculate the prices that you will charge to so that the profit is maximized and at the same time the stadium will be filled to capacity. Calculate the number of each type of tickets sold, as well as the co..
An electrical energy audit indicates that the motor control center consumption is 8*10^6 kWh per year. By using high-efficiency motors a savings of 15 percent can be achieved. The additional cost for these motors is about $80,000. Assume a 20-year li..
Which of the following determine an individual's wage? If the price of output in an industry falls, firms in that industry will ______ labor.
Calculate the currency-to-deposit ratio (cr), and the money multiplier (m) given the above values. Calculate total required reserves (RR), total actual reserves (AR) and the monetary base (MB). Now assume the FED lowers the required reserve ratio to ..
Why do some workers make more money than others? Must everyone make the same wage? Explain your answers using labor market equilibrium.
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