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A change in a firm's technology that decreases its production costs will result in:
a. a leftward shift of the supply curve.
b. an increase in demand.
c. a willingness and ability to supply a larger quantity at a lower price.
d. a reduction in price, therefore a reduction in profits.
e. none of the above.
Illustrate what happens to aggregate output and the price level in each case.
Suppose the Canadian economy, on a fixed exchange rate, has a real growth rate of 2% and is in equilibrium with an inflation rate of 10% and a risk premium of 1%. Suppose changes in the U.S. cause its real rate of interest to increase from 3% to 4% a..
Show the short and long run effects of a monetary expansion in this situation in the AD/AS model. You can omit the labor market and production function graphs and you may assume sticky prices for SRAS.
Review Netflix most recent balance sheet, income statement, statement of stockholders' equity and statement of cash flows. Pay particular attention to sales and net income for the last two years. Comment on 2-3 items that you find remarkable on any o..
Illustrate what would be new equilibrium if re is an increase in autonomous import expenditure from 100 to 200 which result from an increase in currency exchange rate.
Baby boomers can save up to $25,000 per year in a 401k account. If Eileen's starting balance at age 53 is $220,000 and she saves the full amount available to her, how much money will she have saved when she is 65 years old (after 12 years of saving)?..
A perfectly competitive business maximizes profit by producing at a rate where ________.
Why the long-run aggregate-supply curve is vertical. Three theories for why the short-run aggregate-supply curve is upward-sloping.
Excise tax is collected from fishermen, who protest that y alone are bearing burden of this policy. Why might this protest be misguided.
Gasoline is typically less expensive in the United States than across the border in Canada but now suppose that U. S. gasoline price rises above that in Canada due to a change in taxes. How would the gasoline-purchasing behavior of a person who lives..
q.male and female turtles may experience different serum cholesterol concentrations in their blood. provide an
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
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