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After the aggregate demand decreases in part “a” above, what kind of a demand-management policy would a typical liberal economist propose, an active policy or do nothing? How about a conservative economist? What justifications would they provide for their respective proposed policies?
q1. peter and sally enter a bus and two adjacent cramped seats are free. they must decide whether to sit or stand.
You are the manager of a firm that receives revenues of $60,000 per year from product X and $100,000 per year from product Y. The own price elasticity of demand for product X is -2, and the cross-price elasticity of demand between product Y and X is ..
Illustrate what did classical economists assume about flexibility of prices, wages and interest rates. Illustrate what did this assumption imply about self-correcting tendencies in an economy in recession. Illustrate what disagreements did Keynes ..
Elucidate how formal organizations have evolved over the past century. What differences were there in organizations a century ago, compared to today's organizations.
A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. Before the corrective tax, Blow..
There were 13,249 weddings in Springs City last year. According to state records, notaries public performed 17% of the weddings. How many weddings were not performed by notaries public?
Gas prices fluctuate often and in both directions. respond to the following: How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to ..
Don is considering buying a truck at a cost of $30,000. He is planning to keep the truck for four years and is hoping that the truck will sell for $10,000 at the end of year 4. He estimates that the insurance and maintenance costs will be $2,000 in y..
Explain why is economics to an understanding of the problem of development. Why is an understanding of development crucial to policy formulation in developing nations.
Assume that the price of x is $2 and the price of y is $1 and Brian has an income of $10. How much does he consume of each good? Assume Brian's income increases to 20$, calculate his demand for each good and explain whether Brian considers x and y to..
Distinguish between the following views of monetary policy
In December 1992, the government began requiring that food contain labels with nutritional information. The information had to be verified by independent laboratories. The price of verification was $20,000 per food item. What impact would this have o..
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