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As monetary policymakers care more about inflation stabilization, the slope of the aggregate demand curve becomes flatter. How does the resulting change in the slope of the aggregate demand curve help stabilize inflation when the economy is hit with a temporary negative supply shock? How does this affect output?
Let us assume that an economy in which there is no widely agreed upon form of money. In other words, suppose we are dealing with a barter economy.
What type of externalities arise from driving automobiles fueled by gasoline and what is your view on whether the United States should raise the gas tax to the European level and why?
Explain how each of the events described above, affected the world market for oil. Specifically, use a supply and demand diagram to explain changes in price and output.
What is a market structure? Define and discuss in detail the differences between a monopoly, an oligopoly, perfect competition and monopolistic competition.
Can you draw well-functioning preferences (i.e., they follow our assumptions about preferences) such that X is a normal good and Y is a substitute for X and draw the demand curve and indicate the portions that are elastic, inelastic, and unitary el..
Suppose there is a surge in demand for olive oil after researchers discover that olive oil consumption reduces heart disease. Analyze the short and long run effects of this increased demand on you firm.
Determine what happens to the money supply, interest rates, and economy in general if Federal Reserve is a net seller of government bonds?
What business will you go into, and what will comprise your fixed and variable costs? How could your business take advantage of economies of scale?
Determine the specific details about this fictitious company in order to conduct an environmental scan of this company.
A function of government is to regulate natural monopolies. Describe what is a natural monopoly and why it needs government regulation
Identify and enumerate the factors affecting the supply, demand, and price for the company's products and examine whether the demand for the company's products is relatively price elastic or relatively price inelastic and explain why.
Construct a numerical example to show that as marginal product (MP) rises, marginal cost (MC) falls. Explain your answer and use tables and graphs to illustrate.
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