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Consider an economy with the following aggregate demand (AD) and aggregate supply (AS) schedules. These schedules reflect the fact that, prior to the period we're examining, decision makers entered into contracts and made choices anticipating that the price level would be P (subscript 105) AD (In Trillions) Price Level SRAS (In Trillions) 5.1 95 3.5 4.9 100 3.8 4.7 105 4.2 4.5 110 45 4.3 115 4.8 a) Indicate the quantity of GDP that will be produced and the price level that will emerge during this period. b) Is this economy in the long-run equilibrium? Why or why not? c)How will the unemployment rate during the current period compare with this economy's natural rate of unemployment? d) What will tend to happen to resource prices in the future? How will this affect the equilibrium rate of output? e)Will the rate of GDP produced during this period be sustainable into the future? Why or why not?
one receives a higher salary with the successful completion of degrees or the earning of diplomas. Elucidate how the sheepskin effect is analogous to SIGNALING MODEL.
This deviation from the classical dichotomy and the Fisher effect is called the Mundell-Tobin effect. Explain how might you decide whether the Mundell-Tobin effect is important in practice.
General Cereals is using a regression model to estimate the demand as well as for Twee tie Sweeties, a whistle-shaped, sugar coated breakfast cereal for children.
Amy Jane, a new manager at C & D Grooming, has been asked to focus on the competitive environment of the organization. Illustrate which of these factors is among those Amy Jane should focus on.
If your rival advertises and you do not, you will make $1 million and your rival will make $3 million. Does rival have a dominant strategy. What is Nash equilibrium for one-shot game.
illustrate what proportion of the population would score higher than Bob.
llustrate the black market for lnternet access, comprising the implicit supply schedule.
Describe some forms of private spending which represent consumption some forms which represent investment.
For a competitive firm facing a market price above average total cost, the existence of economic profits means that the firm should increase output in the short run even if price is below marginal cost.
Which in turn depends on the animal's access to grazing which depends on the number of llamas sent to the commons.
Calculate the equilibrium interest rate by setting the demand for central bank money equal to the supply of central bank money.
What are key differences between ontological, teleological and cosmological arguments. Identify philosopher who you think best supports his or her argument. Explain your answer briefly.
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