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Classical economists assumed that wage rates, prices, and interest rates were flexible and would adjust quickly. Consider an extreme case: Suppose classical economists believed wage rates, prices, and interest rates would adjust instantaneously. What would this imply the classical aggregate supply (AS) curve would look like?
elasticity-a the price of good x goes up by 2.75 the quantity demanded of good y goes from 10500 units to 25000. what
Two of the major macroeconomic measures that tell us how 'healthy' the economy is are "the unemployment Rate" and "the rate of Inflation". How do they matter to you as an individual who is part of this economic system
Explain the dilemma that advanced nations might have faced as they debated the ratification of the Kyoto Protocol, once the United States withdrew from the agreement.
Why do you think your policy would work in reducing the total amount of emissions -
Consider a firm in a perfectly competitive industry with the following cost structure: VC (Q) = 10 Q2 + 50 Q, FC = 4000 and MC (Q) = 50 + 20 Q. If the market price is Pm = 40, in the short-run this firm will produce
a manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no
question 1. suppose you are working as a consultant for a perfectly competitive firm that is worried about its policies
The nation of Pecunia had a current account deficit of $1 billion and a nonreserve financial account surplus of $500 million in 2008. What was the balance of payments of Pecunia in that year? What happened to the country's net foreign assets
This problem is aimed at understanding the breakeven selling price for a company. Assume you have started up a company for an initial investment called “Invest”. The return you expect is WACC. The investment can be written off over the length of the ..
A rival publisher has raised the price of its best-selling accounting text by $15. One option is to exactly match this price hike and so exactly preserve your level of sales. Do you endorse this price increase?
Sam consumes green eggs and ham. Ham and green eggs are both normal goods.
Why is investment spending not equal saving in the circular flow?
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