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Determine how the following affects the slope of the output demand curve, and explain your results:
(a) The marginal propensity to consume increases.
(b) The intertemporal substitution effect of the real interest rate on current consumption increases.
(c) The demand for investment goods becomes less responsive to the real interest rate.
Explain how effects of rent control are very noticeable to the public in the short run, because the primary effects of rent control occur very quickly.
Red Valve Co. of Carnegie, Pennsylvania, makes a control pinch valve that provides accurate, repeatable control of abrasive and corrosive slurries, outlasting gate, plug, ball, and even satellite coated valves. How much can the company afford to spen..
Shellys preferences for consumption and leisure can be expressed as U(C, L) = (C − 200)(L − 80) (1) This utility function implies that Shellys marginal utility of leisure is C − 200 and her marginal utility of consumption is L − 80. Write down the bu..
Which of the following will be recorded as a credit entry in the U.S. balance of trade in merchandise account?
Illustrate what is the effect on the marketplace for an hour of babysitting services in Middling today, during this increased birthrate.
The federal minimum wage was last increased from $6.55 to $7.25 per hour. Suppose that the elasticity of labor supply of teenagers is 0.12. Using this estimate, by what percent would you expect teenagers’ quantity of labor supplied to change in respo..
Explain how much business CPI does abroad, the firm would expose 5 to 20 percent of revenue to currency fluctuations.
How does the short-run Phillips curve reflect a financial crisis as the one in 2008-2009?
If county government offices required that all employees must live within the county limits, what impact would this have on the elasticity of demand for employees of the county government offices?
Who benefits when retailers in the United States source textiles from low wages countries such as Bangladesh? Who might lose? Do the gains outweigh the losses?
How can two countries both be better off as a result of trade? How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs?
In December 1994 a man in Ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years. (His deposit weighed over 48,000 pounds!) With a reserve requirement of 10 percent, what will be the cumulative change for the bankin..
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