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Suppose in the short run the level of aggregate output in an economy decreases at the same time the aggregate price level decreases. This is most likely due to a
Select one:a. leftward shift in the aggregate demand curve, holding everything else constant.b. rightward shift in the aggregate demand curve, holding everything else constant.c. leftward shift in the short run aggregate supply curve, holding everything else constant.d. rightward shift in the short run aggregate supply curve, holding everything else constant.
a. in early march we received the news that in february the economy added 227000 new jobs exceeding expectations. at
In 2006, Willem de Kooning’s abstract painting Woman III sold for $137.5 million. Portray this sale in a demand and supply diagram and comment on the elasticity of supply. Comedian George Carlin once mused, “If a painting can be forged well enough to..
Suppose that there are three firms, who produce homogeneous products, and whom have the same marginal cost which is constant over output. These firms play an infinitely repeated Bertrand pricing game. Each period they simultaneously set prices.
Determine what do the laws of supply and demand forecast would be the result of an immediate removal of rent control in terms of price of rental housing and quantity available?
As a result of the situation above what will happen to the unemployment rate,Suppose the government increases the minimum wage, substantially increasing firms labor costs.As a result of the situation above what will happen to inflation,As a result of..
Use the classical (RBC) model
It is clear that more education results in higher average life time earnings. Therefore, can we conclude that it is always a good investment to spend more income getting more education
When war broke out in the Middle East, many markets were affected. Most of the worls's oil production takes place in this region and what happens in the market for oil; and (ii) what happens in the market for sports utility vehicles as a result of ..
Due to a tuition rise, most students at a college find themselves with less disposable income. Almost all of them eat more frequently at the school cafeteria and less often at restaurants
Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate.
An individual purchases a dozen eggs and must take them home. Although making trips home is costless, there is a 50 percent chance that all of the eggs carried on any one trip will be broken during the trip. The individual considers two strategies: (..
The fiscal policy measure that has more direct impact on the economy is an increase in government spending if consumer confidence is lower than the previous month. One of the ways the President Obama stimulated the economy was through increased g..
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