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determine the effect on either the aggregate demand curve (is it a rightward or a leftward shift), the aggregate short-term supply curve, and the long-term aggregate supply curve (does the upward sloping portions of the SAS curve shift left or right, or does the vertical portion of the LAS curve shift to the right or to the left). Also determine the effect on the price level, the real output level and employment/unemployment. Provide an explanation and express this graphically using the AS/AD macro model.
Russia has experienced hyperinflation in the 1990s. Other things equal, the expectations by Russians of worsening inflation in the future would probably shift the AD curve to the right.
Illustrate what are the limits to the exchange rate at which it makes sense to produce in both countries.
Do these firms have an incentive to reduce their pollution? Explain with diagram. d. Modern economists suggest 2 solutions to the pollution problem above. Explain how a pollution tax (use diagram) and an emission permit trading scheme can both "so..
The amount that the government raises from the inflation rate tax is ΔM. (ΔM = change in money stock or the printing of more money or the change in the amount of money today from yesterday). Write ΔM as a fraction of nominal GDP.
Go to the Federal Reserve Web site, www.federalreserve.gov, and select About the Fed, then The Federal Reserve System, and then Districts and Banks. Find your Federal Reserve District. Next, return to the Fed home page and select Monetary Policy.
Explain why the payoff matrix in indicates that firms A and B face the prisoners' dilemma. from the following payoff matrix, where the payoffs are the profits or lesses of the two firms, determine (a) whether firm A has a dominant strategy, (b) wh..
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
Raj's Utility bundles of X and Y is given by U(X,Y)=XY A. Fill in the table with Raj's utility for the corresponding bundles x=1 x=2 x=3 ,y=1 ,y=2 ,y=3 B. Wri..
Assume you are an economic consultant for a big company that produces and sells lollipops that are shaped like the faces of Hollywood celebrities.
Describe in detail the implementation of the 4ps marketing mix concept by this company icluding, competition, distribution strategy, target market, product strategy,
Assume the growth rate of the software company and the interest rate are both constant and the software company will be business for years to come.
Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources. Is it accurate to say that this is contributing to increased consumer surplus and reductions in inflationary pressures.
A corporation bought a machine for $100,000 four years ago. It was being depreciated on a straight line basis over five years. The company decides to replace this machine today.
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