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If ___________________ exceeds ___________________, then the economy is in an inflationary gap.
A. potential output; aggregate demand
B. aggregate demand; potential output
C. aggregate supply; aggregate demand
D. aggregate demand; aggregate supply
Eventually input prices will fall and output will rise in the economy if:
A. potential output exceeds aggregate demand.
B. aggregate demand exceeds potential output.
C. aggregate supply exceeds potential output.
D. aggregate demand exceeds aggregate supply.
assume an economy lasts for 2 periods. in period 1 only 1 agent is born this agent lives for 2 periods. in period 2 two
Think of an externality in your community. Explain what type of externality it is. How can it be resolved (through the market and/or through government policies)?"
Consider a market with only two firms. Demand on this market is given by D(p) = 20 – 3p. Initially both firms have the same constant per-unit cost c1 = c2 = 2. What is the equilibrium in this market if firms behave as Bertrand competitors? How much d..
For theEssay, you are required to pick a current economic topic that relates to the material we have covered or will cover in this course.
Suppose that all the necessary conditions exist for the realization of equal wage rates in every market of labor.
Explain how are money cost and opportunity cost related to each other. If markets function well, they are closely related. They are always identical in any economic system.
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All astute comments thus far. Some government projects also programs continue to give benefits for many yrs.
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The graph also shows the marginal revenue curve faced by this firm. Hypothetical cost and revenue curves for a computer producer. Explain how many computers will the monopolist sell to maximize profits.
Suppose that in an hour Chip can gather 8 pounds of fruit or 4 pounds of nuts. In an hour, Monk can gather 9 pounds of fruit or 3 pounds of nuts. Who should specialize in gathering nuts? Monk or Chip? both? or neither?
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