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1. Unemployment occurs even during periods when the economy is growing.
A) True
B) False
2. GDP measures underestimate the value of output produced by an economy because they include services not transferred through markets.
3. An increase in wages will shift the supply curve up and to the left.
4. A decrease in population would shift the demand curve to the left.
5. An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus.
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the “knife’s edge model”?
Assume a specific factors economy produces two goods, cloth and food, and that when representing the output of this economy graphically, cloth is on the x-axis and food is on the y-axis. movement of labor from a Foreign country to the domestic (Home)..
In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine.
q1. suppose that businesses buy a total of 170 billion of the four resources labor land capital and entrepreneurial
Are unions good or bad for economy. How do unions at GM and Ford affect employment levels and wages How do unions affect or industries in terms of employment and wage levels.
Explain why capital flows cause imbalances in the current account. Post to the discussion board your 200 word answer focusing on selecting and organizing your most relevant comments in a coherent fashion.
Explain briefly why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation.
What would you learn about an economy if you determined that its GNP was growing more quickly than its GDP?
Indentured servitude is no longer legal. An indenture was a contract binding a person to work for another for a given length of time (usually for many years), as an apprentice to a master or an immigrant to service in a colony. Such a relationship wa..
Find out QD and QS when cost of good X is $12.00. Is re a surplus or shortage. Illustrate what should happen to cost of Good X to drive it to Equilibrium.
Explain the so-called "Ricardian" model of international trade, including its assumptions, and use this model to explain why and how both of the two countries considered countries gain from free trade between them. What determines the relative extent..
Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers. Graph the production possibilities frontier for the Foreign country. What is the no-trade relative price of cars in Foreign?
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