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If the government steps in to regulate a market, setting a price floor above the free market equilibrium price, will demand increase or decrease compared to the free marker equilibrium? Can you name any industries where the government sets price floors in order to support producers?
Calculate the arc price elasticity of demand over this price and consumption quantity range.
Does the principle of "increasing opportunity cost" hold in this nation? Explain briefly.(Hint: What happens to the opportunity cost of bread-measured in the number of ovens-as bread production increases?)
Discuss the specifics of any cases/examples you use and the implications of same on local citizens of that country.
Jasmine’s Snack Shop sells two brands of potato chips. She produces them by buying them from a wholesale supplier. Brand X costs Jasmine $1 per bag, and Brand Y costs her $1.40.
Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function. What eventually happens to the level of savings? What would happen to equilibrium income if there is a su..
Outline the extent to that you expect regional economic integration to occur in Europe, Asia.
Explain how has technology changed the balance between automation and labor. What type of industry benefits the most from technological innovation.
How does using interest rates as operating or intermediate targets lead to procyclical (reinforcing the cycle) monetary policy How could policymakers use interest rates in the policy process and avoid pro-cyclical policy
Elucidate why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation.
Suppose that you bought an asset that pays 6% nominal interest rate, you expect that inflation rate to be 1%, and the actual inflation is 4%. Calculate the expected real interest rate and the actual real interest rate.
Even small items like dvds that used to ship for 2 or 3 dollars are now shipping for nearly 7 or 8 bucks. its not about the ebay auctions that work low price into shipping, but a great deal of mainstream sites are charging crazy prices.
Explain, using the statistics of government expenditure, personal taxation rates and transfer payments , what fiscal policy stance did the 2011-12 Federal Budget take?
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