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Consider the graph below, and answer the following questions:
a) What is the current long-run equilibrium level of real GDP?
b) What is the current long-run equilibrium price level?
c) If the economy grows sufficiently at $2 trillion, real GDP remains forthcoming in the long run, and the aggregate demand remains unchanged, what will be the new long-run equilibrium price level?
explain several dimensions of the shareholder-principal conflict with manager-agents known as the principal-agent problem. to mitigate agency problems between senior and executives and shareholders, should the compensation committee of the board.
When thinking about the theory of the firm, shirking, and principle-agent problems, we can find analogous situations in our personal lives. Make a Power Point presentation (for sharing with the class) two personal situations to illu..
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram. The state legislature is concerned that the current price does not give the physiotherap..
The World Bank is currently advising newly industrialized countries on how to encourage growth. Using the Internet, library and/or other resources, research and briefly explain 2-3 methods currently being used to encourage economic growth for the ..
What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save?
On Tuesday nights, a local restaurant has a kid's meal special. Nina's son, Braden likes the restaurant's chicken nuggets, but Braden seems to be growing bigger every day and the kid's meal is usually not enough. The restaurant does allow for addi..
If the Fed didn't change the money supply, what would happen to the interest rate and if the Fed wanted to keep the interest rate constant following this money demand shock, how would it change the money supply?
A software firm earned ten million this year. Suppose the growth rate of the software firm and the interest rate are both constant and the software company will be business for years to come.
The uninitiated might look at trading in futures and forwards contracts as Wall Street's way of just conducting an elaborate gambling operation, with bettors laying money on the direction of commodities, stocks, or other assets.
Pick a real-life rm that bundles products in some way. Describe how this pricing function is a form of price discrimination; in other words, why do some consumers effectively "pay more" for a particular product than other consumers do? Why is it a..
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.
What is one significant consequence of fractional reserve banking Banks are vulnerable to "panics" or "bank runs." Banks can only lend an amount equal to its deposits. Banks hold a portion of their deposits in gold. Banks can serve the withdrawals..
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