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The rent for apartments in New York City has been rising sharply. Demand for apartments in New York City has been rising sharply as well. This is hard to explain because the law of demand says that higher prices should lead to lower demand. Do you agree or disagree?
Assume that (a) the price level is flexible upward but not downward and (b) the economy is currently operating at its full-employment output. Other things equal,how will each of the following affect the equilibrium price level and equilibrium level o..
A certain machine expenses $25,000 to purchase and install. It has salvage values and operating costs as demonstrate in the table in the attached file. The salvage value of $20,000 listed at time 0 reflects the loss of installation costs at the time..
What will happen to Y (GDP), r (real interest rate), P(price level), and I(investment), in the short run ?The answer should indicate will these values increase or decrease in the short run.
Illustrate what has been the real change in Bill's net worth.
An oil cartel effectively increases the price of oil by 100 percent leading to an adverse supply shock in both Country A and Country B. Both countries were in long-run equlibrium at the same level of output and prices at the time of the shock.
The table above demonstrate the prices and quantities of 2-goods produced in a country in 2006 and 2007. These are the only goods produced in the country.
provided by the U.S. government How does such assistance help bolster support for free-trade agreements? Do you think workers who lose their jobs because of changes in trade laws deserve special treatment relative to workers who lose their jobs be..
Analyse both the conventional and unconventional tools used by central banks and type of unemployment is responsible for this reduction in the unemployment rate? Explain your answer.
In the 1990s, five firms supplied amateur color film in the United States: Kodak, Fuji, Konica, Agfa, and 3M. From a technical viewpoint, there was little difference in the quality of color film produced by these firms, yet Kodak's market share wa..
Illustrate what economic forces and mechanisms work to maintain trade equilibrium. How does the balance of trade impact business decisions.
Calculate the nominal GDP in 2005 and 2006 Tropic Republic and calculate the GDP in 2006 using the method of the base year prices.
Explain what was happening to the economy in terms of the AS/AD model, including what would need to happen to bring us out of the "recessionary gap". In other words, using the AS/AD model as a starting point, explain the economic situation of 2008..
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