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Explain how the aggregate expenditure function shifts in response to the changes in each of the following variables:
You must provide a full explanation including why the shifts will occur.
1- The real interest rate increases2-Consumer confidence decreases3-Higher taxes imposed on corporate profits4-The economies in the rest of the world go into recession.
A firm uses two inputs, unskilled labor (L) and capital (K) to produce its product. The wage rate for one unit of labor is $5, while units of capital cost $20.
What is national saving? What is private saving? What is public saving? How are these three variables related?
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
What are the FC, ATC, AFC, AVC and MC at these output levels?
Problem on standard deviation
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
An essay on Market imperfection associated with negative externalities.
What is the profit-maximizing price-output combination and what are the levels of the profits and consumer surplus at that point? What is Dead-weight-loss?
What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor
Suppose the emarginal cost of producing the good in before question is aconstant $ 10 per unit of output . What quantity of output will the firm produce.
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