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An oil cartel effectively increases the price of oil by 100 percent leading to an adverse supply shock in both Country A and Country B. Both countries were in long-run equlibrium at the same level of output and prices at the time of the shock. The central bank of Country A takes no stabilizing-policy actions. After the short-run impacts of the adverse supply shock become apparent the central bank of Country B increases the money supply to return the economy to full employment.
a) describe the short-run impact of the adverse supply shock on prices and output in each country.
b) compare the long-run impact of the adverse supply shock on prices and output in each country.
Determine the current GDP growth rate for the United State? Analysis the trend over the last few years. What stage of the Business Cycle would the United State economy be in currently given the trends?
The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy.
A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restuarant has received rave reviews and has lines of diners waiting for tables most nights.
Are chocolate and textbooks complements or substitutes for Jen? b. Calculate the income elasticity for chocolate. Is chocolate a normal good? 2c. Assume we observe the following: Qt = 5; pc = 2; pt = 2.
You are planning to build a new home with approximately 2000-2500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of approximately 450 gross square feet.
Suppose you decide to withdraw $100 in currency from your checking account. What is the effect on M1? Ignore any actions the bank might take as a result of the withdrawal.
Develop an exponential smoothing forecast with smoothing constants α =0.1 and 0.3. What would be the forecast for week 11?
Give an personal example of a reverse logistics system you have experienced as a consumer. Were you satisfied with cycle time of process and what steps did the company take to guarantee your satisfaction.
Bada Bing, Limited. supplies standard 256 MB RAM chips to the US computer and electronics industry. Like output of its competitors, Bada Bings Chips must meet strict size, shape, and speed specifications.
A movie production company faces a linear demand curve for its film, and it seeks to maximize total revenue from the film's distribution. At what level should the price be set Where is demand elastic, inelastic, or unit elastic Explain
If the price of 1 pound of cereals is $10 and the price of a sword is $100, what is the wage rate paid to Hobbits in the Shire? How many Hobbits work in the cereal sector? In sword sector? Because of the War of the Ring, the price of a sword went ..
Prove that if Wi* = \(\lambda1+\lambda2Wi\) then the new intercept b1* = \(\lambda1+\lambda2b1\) where b1 is the intercept of the original regression of W on H. Explain how the standard error of the slope coefficient in (h) is..
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