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Illustrate each of the following events using a demand and supply diagram for bananas.
1. Reports surface that imported bananas are infected with a deadly virus.
2. Consumers' incomes drop.
3. The price of bananas rises.
4. The price of oranges falls.
Consumers expect the price of bananas to decrease in the future.
Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
Which of the followings tends to occur during recessions Cyclical unemployment tends to fall The stock markets tends to surge (experience a rapid rise in prices) Interest rates tend to fall Gross Domestic Product rises Consumer ..
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
Write down the relationship between savings, capital formation, and consumption.
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Changes in government spending and interest rates
Those who advocate that the Federal Reserve target monetary aggregates usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions
Consider economy that is above full-employment equilibrium (natural rate of output) because of an increase in AD. Prices of productive resources have'nt changed. With the help of graph
Consolidated Drugs, Inc. has spent $4 million developing and testing a new anti-aging drug. Management now estimates that it will cost $2 million to produce and market this new product.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
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