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Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. For each event that does shift a curve, use a diagram to illustrate the effect on the economy.
a) Households decide to save a larger share of their income.
b) Florida orange groves suffer a prolonged period of below-freezing temperatures.
c) Increased job opportunities overseas cause many people to leave the country.
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. How many servings of grapes can the school afford each d..
The national debt of many developed nations is projected to grow to unsustainable levels. Why might national legislatures welcome higher inflation? Does inflation offer a means for a country to finance its increasing debt?
Why might a company choose to produce in one low-cost country rather than another? Now consider what new challenges come from producing in foreign locations. For your new global product/service: How should wage rates be determined?
What do temporary changes in the tax code do for incentives? Does this encourage long term planning? Should the government encourage long term planning? Should the Government use tax policy to change behavior?
Describe the extent of economic integration, specifically mentioning the country’s membership(s) within regional trade agreements and the benefits they bring to the country.
The U.S. dollar is overvalued and the peso is undervalued in the foreign exchange market
Describe the differences between shortages and scarcity. In answering this question you should think difference between the short run and the long run in economic analysis.
Marco borrowed $ 24,491 from a bank at an interest rate of 9 % compounded monthly to. The loan will be repaid in equal monthly instalments over 3 years. What is the remaining lump sum after 28 instalments?
Let Y represent income and L represent hours of leisure. Mike's utility for income and leisure is U(Y,L) = Y x L so that marginal utility of leisure = Y and the marginal utility of income = L. Total hours available for leisure and work in any given w..
q1. between the first quarter of 2005 and the fourth quarter of 2006 the cpi increased by 7 percent while the gdp
Suppose you decide to elicit high CEO effort when and if bad luck occurs by paying bonus for $500 million outcomes. Illustrate what criticism can you see with this incentive contract plan.
q1. suppose that ike is loss averse. in the morning ikes stockbroker calls to tell him that he has gained 1000 on his
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