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What are the three curves in the Aggregate Demand Aggregate Supply (AD/AS) model? What are their shapes? What relationships do they each represent?
The yield curve is the graph that shows relationship between interest rates on bonds and default risk on bonds with different rating. True/false explain
Suppose a frost destroys the tomato crop in california but farmers see an increase in their revenue
If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?
Jimmy’s preferences can be represented by the following utility function U = 2x + y. WealsohavePx =3,Py =3andW=100. What is Jimmy’s optimal consumption bundle? Calculate Jimmy’s income elasticity of demand for good x.
Find the value of the test statistic (to 3 dec pl). Can we conclude that the proportions have changed during the year.
If Frank's salary as a sales manager was $70,000 instead of $100,000 would your answer be different.
Suppose the economy's production function is Y = A(300N – N^2). The marginal product of labor is MPN = A(300 - 2N). Suppose that A = 10. The supply of labor is NS = 0.05w + 0.005G. what are the real wage, employment, and output?
Now that you are an expert on elasticities, what do you think would be the best time of year to raise prices, and why? What do you think the elasticities are in the flower business? Use graphs and hypothetical tables to support your answer.
Suppose that the firm has determined its profits-maximizing level of inputs in the short-run. Now the price of a fixed input goes up. How will this change the behaviour of the firm? What will happen to profits? Why?
Illustrate how increase in human capital affects production function. Blue line (circle symbols) in graph below shows production function.
According to crowding out hypothesis, an increase in ---- will lead to increase---- and later on a crowding out of (a decrease in)------
when y converted their savings into deutsche marks, y flocked to Volkswagen dealerships. How can you explain this apparent paradox.
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