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The central bank should never use monetary policy to combat business cycle fluctuations coming from changes in autonomous investment (i.e. it should keep the money supply constant) if it also wishes to keep longer term movements in the price level to a minimum. Is this claim true, false or uncertain? Explain by using words and a single IS/LM diagram and a single AS/AD diagram
How should the manufacurer respond to this competitive threat? Suggest at least two alternatives.
You have a comparative advantage in producing something when you;
Suppose the own price elasticity of market demand for retail gasoline is -0.7, the Rothschild index is 0.5, and a typical gasoline retailer enjoys sales of $2,000,000 annually. What is the price elasticity of demand for a representative gasoline reta..
A union evaluates job offers based on the
Illustrate what is the minimum price neccessary for this firm to produce any output in the short run.
Suppose that pizza is a normal good. Suppose further that all pizza workers earn the minimum wage. What would happen to the equilibrium price and quantity of pizzas sold if income rises at the same time that the minimum wage rises? Explain.
Evalute with 95% confidence the decrease in percentage support between now and 6 months ago.
Consider the microenvironment facing a large, international airline headquartered in US (American or United Airlines) give 2 examples of important trends or events from each of 5 segments of airlines microenvironment ( macroeconomic, technological, d..
Suppose a consumer is at an optimum, consuming 6 hamburgers a week at a price of $1.50 each and 10 donuts a week at 50 cents a donut. If the price of a hamburger increases to $2.00, what will the consumer do to arrive at a new equilibrium? Why?
Carl has a utility function U(x, y) = 2xy + 1. Maximize his utility subject to the budget constraint and derive his demand functions for x and y.
Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to protect consumers?
Explain the impact the law of diminishing marginal returns has on both marginal cost and average total cost - With the aid of a diagram explain the long run average cost curve and the influences upon it.
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