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Defines and explains a closed system and provides an example. Defines and explains an open system and provides an example. Explains the inner and outer flows of a closed system. Explains the inner and outer flows of an open system. Defines and explains leakages in an open system. Defines and explains injections in an open system. Provides a personal example of a leakage describes it and explains it. Provides a personal example of an injection describes it and explains it.
Elucidate whether you would draw an aggregate demand or aggregate supply diagram and predict what shift each situation would cause.
On a typical day, Park Place Clinic writes 1,000 dollar in checks. It generally takes four days for those checks to clear.
Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
Explain the households budget line and its relationship to the indifference curve.
Is it possible that the levels of unemployment present day which are the result of government policies.
Assume a tax of t=$2 is attached to each unit exchanged in market. calculate the new market equilibrium and the deadweight loss from this change.
Elucidate how cost-push inflation might prompt policymakers to take actions that subsequently cause demand-pull inflation.
Assume the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off.
What is the level of price, output, and amount of profit for an unregulated monopolist? Analyze the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by government? ..
Illustrate what happens to the supply curve and the equilibrium point when a new technology improves a production process.
Illustrate what is the impact of shifts of the aggregate demand curve on potential output. Illustrate your answers with a diagram.
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