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For each of the following events, describe the effects on the Canadian economy assuming that it is originally in long run equilibrium. For each, explain the short and long run effects in the context of an aggregate supply and aggregate demand diagram and any adjustment from short to long run equilibrium.
(a) As a result of a correction in Canadian housing prices, domestic consumption spending falls.
(b) The Bank of Canada pursues an expansionary monetary policy.
(c) The discovery of a cheap “cold fusion” technology reduces other energy prices [Hint: Canada is an exporter of traditional energy products.]
In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.
Consider an economy in which the amount of investment is equal to the amount of savings (i.e., the economy is closed to international flows of capital).
If the firms form a cartel to maximize industry profit, what is the industry marginal revenue at the profit-maximizing level of output?
When and where did modern economic growth first happen. What are the major institutional factors that form the foundation for modern economic growth. What do they have in common.
Suppose the demand for honey is given by Q=500-4p. Also, suppose there are 80 honey producers in the market. What is the equilibrium price of honey?
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that al..
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
Suppose the market for oranges initially has supply described by P=10+Q (with price measured in dollars per bag and quantity measured in millions of bags) and demand described by P=20 - Q. Suppose a snow storm causes the supply curve to shift to the ..
How much equity would she have had in the house at the time of its sale.
q1. suppose you want a lump sum payment of 100000 three years from now. rounded to full dollars how many current
Two firms, A and B, each with a marginal cost of $50, form an oligopoly whose market demand is P = 650 ? 10Q. If the market is defined by Cournot competition, what quantity will they produce and what price will they charge?
the net profit earned in business rs 60000 but the net sales occurred during the year are rs. 300000.compute the net
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