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Create a realistic scenario that illustrates the aggregate-demand / aggregate-supply model. In your scenario, you should identify changes in specific variables that cause each curve to shift. Choose ONE of the statements below and discuss the impact on output and prices using the AD-AS model. "In 2012, the unemployment rate will not fall significantly." "The slump in the housing prices, coupled with tighter lending standards, will make the economic recovery slow and painful." "Increasing budget deficits will make the economic recovery uncertain and will hamper future economic growth." Reply Quote
Suppose the formerly competing ?rms in question 3 form an employers' association that hires labour as a monopsonist would. Describe verbally the effect on wage rates and employment. showing the monopsonistic wage rate and employment level as W2an..
What do you mean by a social welfare function? If you assume that such a function exists, what properties of social optima would be considered by you? Discuss such properties.
for each 100 that an employee earns the employer pays 4.45 in canada pension plan premiums and the employee pays 4.45
3. Xander Harris is considering whether to buy a corn and soybean farm in Iowa. The farm will cost $800,000, and Xander will be able to pay this from profits his recently deceased mother made on the stock market and willed to him. He estimates ..
consider the following short run-production function where lvariable input
a consultant gives you the following equation which represents the demand for new cars as a function of the price of
Show how a monopoly firm (industry) behaves in short run (using any practical example: emphasize on output, price and average cost).
For each of following cost-output relationships, explain the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions
1.controlsoft inc. is a supplier of inventory management and control software that is popular with companies in the us.
when looking at a renewable resource such as fisheries explain what is meant by a sustainable yield. explain different
Briefly explain whether each of the following is primarily a microeconomic issue or a macroeconomic issue. a. The effect of higher cigarette taxes on the quantity of cigarettes sold
Explain the following statement: Any deviation from planned output or planned expenditures (Consumption + Investment) will throw the economy into disequilibrium.
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