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1. Why do wage increases along with increases of other input prices impact the short-run aggregate supply but not the long-run aggregate supply, unless they reflect permanent reductions in the supply of those inputs?
2. List and explain the three theories for why the short-run aggregate-supply curve is upward sloping.
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Determine the profit-maximizing prices both firms will charge. In addition, calculate the price-cost margin for each firm and indicate which has more pricing power and why.
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Describe what effect an expansionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
The advent of the one man bus involved more capital equipment: an automatically operated coin box and door control device - to name two of the capital goods that replaced the conductor."
Describe the following statement: "In competitive market the least-cost production methods are revealed by entry and exit, while in public utility regulation they're revealed by commission rate hearings. It is easier to fool commissi..
Let the market demand for rye bread be given by Q = 500 + I - 250P rye + 400P wheat , where Q is monthly demand in number of loaves, I is average monthly income in dollars
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
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