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Over the past several years, the predictions of the Philips Curve haven’t exactly panned out. Now, with the expectation of meaningful expansionary fiscal policy on our horizon, and starting from near full employment, the predictions of the Philips Curve should soon become more accurate. What is the primary prediction of the Philips Curve? Using the AD-AS model, show how the upcoming fiscal policy, given our employment situation, will result in the outcomes predicted by the Philips Curve.
Explain the impact of economies of scale on the capacity of a firm. Understand how to use decision trees to analyze alternatives when faced with the problem of adding capacity.
What political and legal processes must be followed to sell electronics in Taiwan, and are there existing social and cultural structures that will effect business operations?
Suppose Latasha runs a small business that manufactures frying pans. Assume that the market for frying pans is a price-taker market, and the market price is $10 per frying pan. Calculate Latasha's marginal revenue and marginal cost for the first seve..
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why?
A single monopoly firm faces the market demand of P = 90 − 2Q. Its cost function is characterized as C = Q2 + 100. Characterize the marginal revenue function. Plot the demand, marginal revenue and marginal cost curve. Characterize the equilibrium pri..
Maintenance costs for a small bridge with an expected 50-year life are estimated to be $1000 each year for the first 5 years, followed by a $10000 expenditure in the year 15 and a $10000 expenditure in the year 30. If the maintenance operation is con..
When an increase in aggregate demand exceeds the increase in aggregate supply,
Rescission. Farrokh and Scheherezade sharabianlou agreed to buy a building owned by Berenstein Associates for $2 million. They deposited $ 115,000 toward the purchase. Before the deal closed, an environmental assessment of the property indicated the ..
If many firms enter the computer software industry and bid up the price of programmers, then Select one: a. the long-run industry supply curve will slope down. b. the SRATC will shift down. c. the long-run industry supply curve will slope up. d. The ..
For each firm within an industry, T = X(X - 1)2 + 25X; where T is the long-run cost of the firm, and X is the firm's level of output. For the industry as a whole, Y = 34 - p; where Y is total consumer demand for the industry's product, and p is the p..
Suppose Danielle consumes pancakes and waffles. Her utility function can be expressed as U(P,W)=10P^.75 W^.5. Furthermore, suppose the price of pancakes is $4.00 and the price of waffles is $2.50. Define Danielle’s marginal rate of substitution for P..
If a popular TV show on personal finance convinces more Americans about the importance of saving for retirement, the ________ curve for loanable funds would shift, driving the equilibrium interest rate ________.
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