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Explain why an increase in export expenditure might temporarily result in the economy operating above potential GDP. Explain why this is temporary. If the government considers that the level of inflation associated with the adjustment of the economy back to potential GDP is too high, how might it act to moderate the outcome?
Explain a way that your family interactsin factor market and a way that it interactsin products market. Discuss how circular flow relates to current economic situations.
A seasonal bus tour firm has 5 buses with a capacity of 60 people each. Each customer pays $25 for a 1-day tour. The firm has an expense of $5/customer and a fixed annual cost of $360,000. If occupancy on the buses average 80% each day, how many days..
Now suppose that the city doubles the fee from $8 to $16. Let's determine what effect this will have on revenue for the city. To be conservative, let's assume that the absolute value of the elasticity of the demand for car trips in central London is ..
Choose one essay below and write at minimum a 5 paragraph essay (WITH EXAMPLES) APA style Minimum 2 sources excluding the text book. Make a case that either the government works or the government doesn’t work. What is the relationship between fixed c..
What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9 % is too high.
Texas Instruments the early period of the industry decided to price its semiconductors below production costs the decision increased sales but resulted in near- term reduction in profits. Why did TI make the decision. What were the long term implicat..
Consider two manufacturers. Each makes a product. The two products arc partial substitutes. Priced at P_t. product i receives a demand q_1 = 15 - 2 9_1 + p_2 and q_2 = 15 - 2 p_2 + p_1. It costs $5 to produce a unit of product I and $10 to produce a ..
karens performance pizza is a small restraunt in ny that sells gluten free pizzas karens very tiny kitchen barely has enoug room for the three ovens in which her workers bake the pizzas karen signed a lease obligating her to pay the rent for the t..
Spartan Town Bank is the only bank in town when it comes to borrowing or depositing. You may also assume it’s the only bank in the economy. Initially, it holds $4000 worth of checking (or demand) deposits, $1000 of reserves, and $3000 of loans. Const..
According to the Keynesian model, equal increases in government spending and taxes will result in which of the following?
In a perfectly competitive market for electricity, consumers’ benefit (in dollars) from consuming electricity is given by B(Q)= -Q2+1000 Q, where Q is the unit of electricity consumed. Derive the demand for electricity in this market.
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