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A country with a relatively small + aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive increase in the AD curve (hyperinflation countries like Germany before WWII) don't seem to have massive eocnomic booms. Why does a small AD increase sometimes raise GDP much more than a giant AD increase?
Explain how much would she need to make in revenues to earn positive accounting profits. If a firm makes positive economic profit it means that the firm earns normal profit.
Describe the current general interest rates. Is the current interest level one that promotes or retards growth in the economy.
What is the mechanism by which the central bank announcing an inflation target translates into an actual inflation rate and how would your answer to q1 change if households had rational expectations
Given the wide variety of different fast-food vendors, the industry is fiercely competitive, as is the unskilled labor marketplace.
Explain how each of the following will affect the relative values of the dollar and the euro:
XYZ Company operates in a perfectly competitive market. Due to robust economic growth XYZ company made above normal profits. Taking into account the characteristics of this market,
Outline the extent to that you expect regional economic integration to occur in Europe, Asia.
The economics student knows that profit maximizing manager will produce quantity where marginal revenue equals marginal cost
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to describe the equilibrium level of real GDP and prices if the economy is operating:
At level of inflation explain how long does it take for the price level to double.
The supply of meat in France rise, results meat prices to fall. Lower prices always mean that French households spend more on meat.
As a government needs to increase tax income, it will often increase the sales tax on gasoline.
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