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Q. Illustrate what does a contractionary gap imply about actual rate of unemployment relative to natural rate?
Illustrate what does it imply about actual price level relative to expected price level?
Illustrate what must happen to real and nominal wages in order to close a contractionary gap?
Elucidate what evidence of excess supply or excess demand can you cite in these examples.
Suppose taxes are measured in cents as in the first case, but consumption is measured as gallons consumed every month.
Briefly discuss the impact of rational self-interest on each of the following decisions. Whether to attend college full time or enter the workforce full time.
Illustrate what are the explicit, implicit, and total economic costs of the firm. How much economic profit does the firm earn.
If the marginal product of capital is twice the marginal product of labor and the price of a unit of labor is $4, illustrate what must be the price of a unit of capital.
Illustrate what happens if the consumer faces a borrowing constraint that prevents her from borrowing.
Determine the cost to the government of buying firms unsold units
Assume that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition.
Illustrate which of the following tax systems could NOT be structured to satisfy conditions of vertical equity.
Give an example of a product you consume for which your marginal utility increases with the amount of your consumption
Show on a supply-and-demand diagram and explain in words what will happen to the Canadian exchange rate compared to the foreign exchange rate when the world demand for lumber, wheat, and paper increases.
Elucidate how should Microsoft market long distance telephone services in the new wireless telecommunications devices which also include Internet portals.
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