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Will Tip extra for critical thought answer with graphs but nothing excessive is necessary.
Assume the economy initially is in a long run equilibrium. Suppose the following shocks occur: U.S. fiscal policymakers decide to decrease government spending dramatically on all federal programs; western European nations adopt protectionist policies toward the U.S.; Canada lowers trade barriers against all nations except the U.S.; the Fed's standing policy is to prevent inflation from increasing beyond its current rate. Using the AD/AS model, briefly explain the short-run and long-run effects on inflation and real GDP that these policies will have. Also, comment on the value of the U.S. dollar against the Euro and Canadian dollar.
Can you please explain how I obtain the profit maximizing rate of output? I also do not understand how if a price of the ties were to fall from $19 to $15, how many ties would be produced. Lastly, how do you understand at what price a firm should shu..
Which of the following statements best defines the economics of the so-called superstar effect in the labor market?
(Long-Run Industry Supply) Why does the long-run industry supply curve for an increasing-cost industry slope upward? What causes the increasing costs in an increasing-cost industry? What are the major characteristics of perfectly competitive market? ..
The Einstein Bagel Corp. has used a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps, she receives one dozen bagels free. If the opportunity set has any kin..
The United States, with about 300 million people, accounts for about 5% of the world population, but it accounts for over 20% of the world GDP and consumes over 20% of global resources. What do you think? What is your future global economic and busin..
Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..
Assume that you are an economic advisor and your focus is on understanding the different types of exchange rate systems. You have been hired to understand the shifts in monetary policy and their influence on monetary policy.
The theory of public choice suggests that
q1. in 2011 company xyz had sales of 345620million net operating profit after taxes of 10250 million and employed 62650
Do you think these firms would welcome congressional legislation which restricted the amount that any one firm could spend on advertising to $1 million yearly, and thereby allowed them all to drastically reduce their costs without fear of losing grou..
Define a class Country that stores the name of the country, its population, and its area. Using that class, write a program that reads in a set of countries and prints
What would happen to the price and quantity demanded and/or supplied if the government, in its attempts to help the poor, implemented a price ceiling on gasoline? What is a price ceiling and how successful would the policy be? Why?
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