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???According to Keynes, why might deflation create problems for an economy?
?In expectation of increased spending, too many entrepreneurs would begin businesses and most would fail.
?Consumers might expect prices to fall further and cut back consumption now.
?The cost of repricing goods would increase costs, and therefore reduce profits, for businesses and they would cut production.
?People would drop out of unions because unions would become ineffective at keeping wages of members high.
Bob and Dexter share a dorm room. Bob is a chain smoker but Dexter does not smoke. There are no laws that forbid smoking in the dorm rooms.
In Music Ville, the price elasticity of demand for CD players is 1.3, the income elasticity of demand for CD players is 0.4, and the cross elasticity of demand for CD players with respect to MP3's is 0.1. If incomes in Music Ville increase by 15% wit..
What happened in the last 6 years? 1) By how much has GDP (and Real GDP) changed, and have there been significant changes in the internal composition of GDP?
q.the clear brook high school band is holding a car wash as a fundraiser to buy new equipment. the average time to wash
The existence of ability bias causes estimated rates of return to education to _______ the actual rate of return for a typical individual. The existence of ability bias causes estimated rates of return to education to _______ the actual rate of retur..
There are learning economies, so that costs in the second period are a function of production in the first period. Will price be higher in the first or the second period?
How does lean maintenance differ from the traditional approach under which a maintenance department has the responsibility for all maintenance functions? Which level on the maintenance performance hierarchy would you expect to find a lean maintenance..
Assuming labour demand is downward sloping and that the labour market is competitive, what happens to national income as a result in immigration.
Conclude how fixed and variable costs should be adjusted to maximize profit and identify methods to reduce costs.
Suppose the price of good 1 is $2, and the price of good 2 is $1. Derive Pete’s demand function for good 1 (as a function of income). Is good 1 normal for Pete? How about good 2? Plot the Engel curve for goods 1 and 2 (with income on the horizontal a..
The market basket utilized to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts also 2 pairs of pants.
Suppose the labour market in the house cleaning industry in Quebec City can be described by the following demand and supply equations: LD = 400 - 10w and LS = 40 + 20w. Calculate the equilibrium wage and employment if the market is free.
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