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General Economics Terms
Three senctence minimum definition on:
1. Complete crowding out2. Laffer Curve3. Proportional income tax4. Cyclical Deficit5. M16. Cash leakage7. Open Market Operations8. Reserve requirement9. Equation of exchange10. Liquidity effect11. Expansionary monetary policy12. Gold standard13. Absolute real economic growth14. Per capita real economic growth15. Comparative advantage16. Tariff
E;lucidate whether each among the subsiquent is an example of an automatic fiscal stabilizer.
Suppose demand for the firms watches falls permanently to P = 20 - Q/20,000. In view of this fall in demand, what output should the firm produce in the short run? In the long run? Explain.
Suppose there are 10 consumers in the industry. Each has the following demand: p = 10 - q-Calculate aggregate demand and aggregate supply in the market.
In the following list a number of well-known companies and the products that they sell. Which of the four types of markets (perfect competition, monopoly, monopolistic competition, and oligopoly)
A Monopolist is deciding how to allocate output between two markets. The two markets are separated geographically. Demand and marginal revenue for the two markets are given by:
What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade.
Discuss how labor market mobility affects the unemployment rate.
Show the new utility maximizing bundle of gasoline and all other goods. What is the slope of the new budget line? What is the consumer's new MRS of all other goods for gasoline?
Describe and graph (using AD/AS framework) an example in today's news of fine tuning economy. Assume the MPC in an economy is 0.8, the APC is 0.8 and disposable income is $9 billion. If disposable income increases to $14 billion, what is the new le..
You are the manager of a local sporting goods store. Given the reservation prices, determine your optimal bundle pricing strategy.
Explain her change in consumption in terms of income and substitution effects (give a precise quantitative answer). Is this a Griffin good (how do you know)?
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
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