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Why is the long-run aggregate supple curve vertical? Explain the shape of the short run aggregate supply curve. Why is the short-run curve relatively flat to the left of the full-employment output and realively steep to the right?
Due to severe damage, a gas pipeline supplying gas to Arizona was shut down for some weeks in summer of 2003. Gas became scarce in Arizona, and prices increase,
At each level of output compute savings. At each level of output, compute unplanned investment (inventory change). What is likely to happen to aggregate output if the economy were manufacturing at each of the levels indicated?
Suppose the government impose a tax of $20 per unit of output on all firm in the industry. What effect doest this have on the industry supply curve. Find the new competitive price and output. What portion of the tax have been passed on to consumer..
Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 28Q – 5Q^2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 – 10Q and MC(Q) – 8.)
Locate an article pertaining to a change in the supply, demand, and pricing of a particular product or service. Utilizing the economic theories, prepare a paper in which you summarize the article and elucidate why changes made in supply, demand, a..
The New York Times reports that Wal-Mart has decided to challenge Netflix and enter the online DVD by mail market. Because of economies of scale, Wal-Mart has a slight cost advantage relative to Netflix. Wal-Mart is considering the use of a limite..
Explain how will reduced smokers affect the GDP in the long and short run. What does increased revenue from cigarette taxes do to the deficit and budget.
Assuming that labor accounts for 80% of country Y's gross domestic product, compute immigrant surplus as a share of national income.
The questions asked if a paper mill manufactures $1 million worth of paper this year but adds considerably to the pollutants in a nearby river, are the social expenses arising from this pollution reflected in the gross domestic product?
Determine the profit maximizing level of output and price. Is this long run equilibrium? According to the theory of monopolistic competition, do you expect entry or exit taking place in this industry?
Illustrate What would happen if prices were lowered when demand was inelastic
Explain how much is the market paying per share for growth opportunities. Exzplain what is your expected one-year holding period return on HP stock.
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