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Answer one of the following questions:
A. While having a haircut, the hairdresser heard you were studying macroeconomics and said "The reason the aggregate demand curve slopes downward is that when the price level is higher, people cannot afford to buy as many goods and services". Do you agree or disagree with the hairdresser's statement? Explain.
B. List three variables that would cause a decrease in real GDP--indicate whether changes in each variable increase or decrease aggregate demand or short-run aggregate supply. Next, state three variables that would cause an increase in the price level--indicate whether changes in the variable increase or decrease aggregate demand or short-run aggregate supply.
What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets?
How they became unemployed. In a multi-paragraph essay, apply the theories of unemployment to explain the type of unemployment that each of these individuals is facing and explain which of these individuals qualifies for unemployment benefits.
Leonitres bought unit trusts and invested for income. She invested £42,000 in a unit trust with an offer price of £75 per unit, and sold the units after 3 years at the same price. During this period she received income from the units of £9,744. Th..
Your production line has recently been producing a serious defect. One of two possible processes, A and B, could be the culprit. From past experience you know that the probability that A is causing the problem is 0.8 but investigating A costs $100..
In a series of studies of economic growth conducted at the National Bureau of Economic Research, economists showed that the historic rate of economic growth in GDP could not be accounted for entirely by growth in labor and capital inputs. Consensu..
1. assume c 20 .75ydnow assume that government spending is increased by 12 billion. that would increasedecrease
Work out the effects of the following changes on 1. International price of bananas 2. Output of both goods in both countries.(Show the changes in world relative supply and demand curves and the PPF of each country).
you manage gofer delivery service. you rent a truck for 10 per day and each delivery takes an hour of labor time. the
Suzy knows that she has maximized her utility, as she is on her budget constraint.
The Conference Board publishes an index of Consumer Confidence that is good measure of the non price determinant of demand, customer expectations.
What are the components of GDP, and how does energy consumption enter each of these components? How would changes in energy prices, such as oil price shocks, possibly affect GDP growth? Please explain the related impacts on inflation and unemploym..
Hubert is a 72-year-old professor. He teaches only one or two courses a year, but he''s still pursuing an active research agenda.
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