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a. Depict an economy in a short-term equilibrium that is lower than the long-run aggregate supply of the economy. That is, show an equilibrium that has the economy operating below its potential. Show this situation graphically, including short-run aggregate demand and aggregate supply, as well as long-run aggregate supply. Explain one possible way that the economy could have arrived at this unfortunate situation.
b. In terms of major "economic indicators" (GDP, unemployment, CPI), describe in general terms what is happening in the economy described in part a. of this question.
c. List two factors, either government policy or changes in the private sector, that could increase aggregate demand, resulting in an equilibrium at full employment? Briefly describe how each might work.
d. If no changes in aggregate demand lift the economy back to full employment, what might hinder or even prevent reaching full employment solely through changes in aggregate supply?
a soft-drink bottler collected the following monthly data on its sales of 12-ounce cans at different prices.month 1 2 3
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How the airport uses sustainability at the operational side/airside (everything behind the gate and basically where the airplanes are) at an airport
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What can shift the vertical (long-run) aggregate supply to the right? What can shift the vertical (long-run) aggregate supply to the left?
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BASED ON YOUR RESEARCH AND ANALYSIS, DETERMINE THE MONETARY POLICY ACTION YOU THINK SHOULD BE UNDERTAKEN. DETAIL THE MONETARY POLICY RECOMMENDATION YOU MAKE AT THE NEXT FEDERAL OPEN MARKET COMMITTEE MEETING.
What happens to the reserves of the bank? What happens to the money supply in the economy as a whole if the reserve requirement is 10%, all payments are made by check, and there is no net drain into currency? How would your answer in part b be aff..
1.For the following list of items, indicate if they are in M1, M2, or neither:1-1)Your $5,000 line of credit on your Bank of America card1-2)$50 dollars' worth of traveler's checks you have not used yet1-3)$1 in quarters in your pocket
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Compute the absolute and relative risk aversion. Are they increasing, decreasing, or constant and analytic expression for the certainty equivalent amount of wealth in this gamble.
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