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1. (Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real GDP? What determines the slope of the aggregate expenditure line?
2. Why do you think investment spending is the most sensitive component of AD? Briefly discuss.
3. Why do you think an average American spends more than an average European? Briefly discuss.
4. (Changes in Aggregate Supply) What are supply shocks? Distinguish between beneficial and adverse supply shocks. Do such shocks affect the short-run supply curve, the long-run supply curve, or both? What is the resulting impact on potential GDP?
Draw the cheese market for the United States showing the world price as the price for this market. How much cheese does the U.S. import at the world price
Name some areas of business in the United States where the prevailing market structures have changed dramatically in last 20-years and discuss the direction of change
1.most people are concerned that wages determined in the labor market are unfair2.most people typically earn the bulk
1. down on our luck studio has spent 100 million producing an awful film a depressing story about a miserable person.
There are two assets that consumers can use in order to provide for future consumption: there is a short-term liquid asset and a long-term illiquid asset - does the planner provide more or less liquidity insurance compared to the market allocation?
what is the effect on the price of a recordable cd and the quantity of recordable cds sold ifa. the price of an mp3
Price discrimination occurs when a.the supply of the product is elastic b.a product's average cost is greater than its average revenue c.a product's average cost is less than its average revenue d.differences in a product's price reflect differences ..
What is opportunity cost and describe with the help of an example, why assumption of constant opportunity cost is very unrealistic and also calculate point elasticity of demand
5 examples of individual and market demands? 5 examples of firm and industry product demands? 5 examples of autonomous and derived demands? 5 examples of durable and nondurable demands? 5 examples of shortterm and longterm demands?
The local utility company applies a "declining block" rate structure for its industrial consumers, that lower unit price is charged for higher quantity blocks of electricity and water usage. Is the company practicing any type of price discriminati..
Describe how this change affects output both immediately and over time. Is the steady state effect on output larger or smaller than the immediate effect?
firms can operate in one or more markets and not always on the same side of the market. general motors is a buyer in
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