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Explain how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply curve to shift and in what direction. Also explain how this shift would affect the equilibrium price level and real GDP. 1. Consumers expect a recession.
2. Domestic technology improves.
3. Foreign price level rises.
4. Government spending falls.
5. Higher future income is expected.
6. Resource prices fall.
Using the following schedule, define the equilibrium price and quantity. Explain the situation at price of $10. What will occur? Discuss the situation at a price of $2. What will occur?
Production Possibilities Tables for Germany and Canada (note that we are assuming that opportunity costs remain constant along the production possibilities frontier), and that each country produces only these two products).
What are primarily intended to address the problem of insuring people who do not have health insurance? Would a public national health insurance system reduce total spending on health care in our economy?
You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:
What takes place to the equilibrium price and quantity of ice cream in response to each of the following? Describe your answers.
Suppose we have a competitive market for a good with domestic demand and supply given by:
The socio-economic shortcomings that China experienced
Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four possible $1 price changes.
What was the cross-exchange rate between the Real and the Peso in 2001? Real____/Peso. What was cross-exchage rate between Real and Peso in 2002? Real_____/Peso.
What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
What are those key objectives and what are the key tools the Fed plans to use to achieve those objectives?
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