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An economy is facing the inflationary gap shown in the accompanying diagram. To eliminate gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real GDP, and aggregate price level change as the monetary policy closes the inflationary gap?
Elucidate unequivocally why the foundation of trade has nothing to do with absolute advantage and only the law of comparative advantage is relevant.
Elucidate what can you infer from this data about labor productivity growth in the US economy during the period.
During recent years, MicroChips Corporation has enjoyed substantial economic profits derived from patents covering a wide rang of inventions and innovations for microprocessors
Assume a merger of company would simultaneously lessen competition and reduce unit costs through economies of scale.
Illustrate what will the new level of nonborrowed reserves. If interest rates do not change, what will be the new level of total reserves.
Save their domestic industries from facing any competition. It is an unrealistic approach as all the countries endeavor to achieve the same objective.
Elucidate the mechanisms through which improvements in population health can lead to improvements in income levels.
Illustrate what will be the percent change in hotdog sales if the price of hamburgers goes up by 10%.
Would an attempt to decrease the budget deficit not increase it. Does today's deficit not create tomorrow's surplus.
Illustrate what are the pros and cons of alternative strategies to tackle a foreign market.
Assume there are 3-firms with the same individual demand function. This function is Q = 1,000 - 40P. Assume each firm has a different cost function.
illustrate what happens to total income when the price of milk is increased.
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