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Explain how the following statements relate to the AD-AS model?
1. The FEd expected a weaker dollar to help increase exports.
2. The above actions by the Fed may cause inflation to rise to levels that most would consider unacceptable.
3. The fed has bought more than two trillion in treasury bonds and mortgage bonds to stimulate the economy.
4. Businesses already have ample access to cheap credit and are reluctant to borrow, hire, and invest for other reasons.
What happens to social welfare (the sum of consumer surplus and producer profit) as a result of the threat of entry in this market? What happens to equilibrium price? What might this imply about the role of potential competition in limiting market..
Suppose that you are hired as consultant to a firm producing a therapeutic drug protected by a patent that gives a firm a monopoly in two markets. The drug can be transported between the two markets at no cost. The demand schedule in the first mar..
use the phillips curve to describe the tradeoffs between inflation and the unemployment rate both in the short-run and
1. began in France with the development of the steam engine and then spread to the UK and the United States. 2. began in 1550 when the English learned how to use coal to replace wood as a heat source and spread to france and eventually the United S..
1. What would be true of entitlement spending rose to 100 percent and the federal budget was balanced? (Hint: Under a balanced budget, tax revenues equal the sum of discretionary expenditures.) 2.How would entitlement spending be funded if ta..
The production function
What is the shutdown point? Give an example. How is the short-run defined in the production process? Please provide references if applicable.
The demand for tickets at each game is q = 100,000 - 6,000P. If the capacity of the stadium at that university is 40,000 seats, what is the revenue maximizing price for this university to charge per ticket? I already know the answer is $10. I need..
When a employee declares that he consider to quit, say next month, the threat of being fired has no bite. The employee may find it in his interest to shirk.
Work decisions are based upon a comparison of priviate cost and the private benefit. The external or spillover benefit of someone doing additional work is measurable for society as the change in?
when a company decides to change the price of a product it knows the demand for that product will change as a result.
1. if the economy is in equilibrium and suddenly the level of planned investment increases by 2 billion national income
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