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Sellers set prices of some items such as tickets in ad- vance of the event. These items are sold in the primary market that involves the original seller and buyers. If preset prices turn out to be below the equilibrium prices, shortages occur and scalping in legal or illegal secondary markets arises. The prices in the secondary market then rise above the preset prices. In contrast, surpluses occur when the preset prices happen to exceed the equilibrium prices.
Determine whether each of the following would be included in 2002 United State gross domestic product,
Several cities regulate the taxi industry by licensing cabs. These licenses are often called medallions because they are issued in the form of a metal shield that must be affixed to hood of the cab,
Assume that the economy starts in steady state. According to the Solow growth model, how would each of the following affect consumption per worker in the long run, Explain?
Elucidate what determines the rate of inflation when the economy is at long-run equilibrium.
Suppose the multiplier equals 10.0 and autonomous expenditure decreases by $30 billion. What is the change in equilibrium expenditure?
Utilizing aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each government policies will move the enconomy from one long-run macroeconomic equilibruium to another.
Describe what do you mean by the price elasticity of supply.
A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X, or Y List the bonds in the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest.
"Too Big to Fail" is title of a book and a movie by HBO. It refers to the bailout of the major financial institutions that began in 2008, and at the time there was concern,
Wednesday the price changed to 1.8275. Compute your profit-loss in USD on Tuesday and Wednesday.
In the aggregate expenditure model, suppose that consumption function is given by C=800+0.58(Y-TP), that planned investment (I) equals 250, and that government buy
Consider a market-clearing economy in which output (Y 1 )depends only on the capital stock (k 1 ) and an exogenous productivity variable ( θ1 ) according to the production function y1 = θ 2 f(k 2 ).
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