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Using an aggregate demand and supply diagram, explain how each of the following scenarios affects the equilibrium price level and aggregate output. Consider first the short-run, then the long-run equilibrium for each scenario.
a) Consumers expect a recession, while resource prices rise at the same time.
b) Foreign income falls as domestic technology improves.
c) Foreign price level rises as domestic government cuts taxes.
d) Government spending falls and a higher future price level is expected.
e) Higher future income and lower price level are expected.
f) Resource prices fall and technology improves.
Under what conditions (such as relative costs, position of the demand curve, number of low-cost firms) will the smaller, higher-cost growers be driven out of business?
depreciation is 5 percent of capital in both countries and country A saves 10 percent of output whereas country B saves 20 percent. If A starts out with a capital-labour ratio of 4 and B starts out with a capital-labour ratio of 2, in long run:
Assume you and your roommate have started a bagel deliver service on campus. List out some of your fixed costs and discuss why they are fixed.
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
You live in a small town with basic medical care facilities and a couple of general practitioner physicians. One of the physicians has said that your cousin needs to be seen by a specialist. However, the nearest specialist is 3000 miles away, on the ..
Why is a market economy susceptible to coordination failures that can lead to unemployment and inflation? What do you think can be done to rectify these failures?
Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.
Describe the changes in the model parameter(s) and resulting changes if any in the hiring decisions of the three types of firms.
mustard and mayonnaise are substitutes. mustard and relish are complements. mustard is a normal good. during the summer
Discuss the potential conflicts that might occur between that of IT and Operations Management. How might such issues be addressed and resolved.
Decide whether each of following statements is true or false. Then explain why your answer is correct, based on Slutsky decomposition into income and substitution effect.
q1. susie purchased a non-refundable ticket to a soccer match for 20. it will cost her 10 worth of gas and wear and
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