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Give two different causes of how an economy can experience stagflation. explain in words why rising prices decrease the multiplier effect of a shift in the aggregate demand curve. Think about the impact of an upward sloping aggregate supply curve and assume that imports remain constant relative to the aggregate demand shift.
Keeping all elsr constant their answer would likely differ. How do you guess the interviewed will answer? Does the diference in response matter?
Analyze and discuss the roles of physical capital, human capital, technology, and natural resources in influencing long-run economic growth of aggregate output per capita. Then discuss how governments can contribute, or discourage, long run growth th..
Calculate Marginal Revenue from demand if the marginal propensity to save is 0.05, how large is the multiplier.
For the production function q= k^0.25 l^0.25. Find total cost function C(w,r;q). Show that it is homogeneous of degree one in input prices and explain the intuition behind this property. Find the profit function?(w,r,p). Show that it is homogeneous o..
A piece of construction machinery costs $5000 and has an anticipated $1000 salvage value at the end of its five year depreciable life. Compute the depreciation schedule for the machine by: Straight line depreciation;
A country has a fixed exchange rate and pursues and expansionary monetary policy. Explain, in word, any symbols what will happen. How is external balance affected? Is monetary policy effective?
q.the market for tennis balls is dominated by two firms wilson and penn. the research department of wilson has
An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $18,000 and is expected to have a useful life of 4 years. The salvage value at the end of the lift's useful life is estimated to be $4,000. determ..
Assumes that wheat producers lobby the government for a price floor also receive one.
Explain why the Aggregate Supply curve becomes increasingly steeply sloped at levels of RGDP near "full employment" and becomes especially steeply sloped beyond "full employment" RGDP. Why might the rate at which the Aggregate Supply curve shifts ver..
If the price of one good is four time the price of the other also the price of both double, Illustrate what effect does it have on the set of affordable bundles
American exports cheaper or more expensive for importers of U.S. goods in Great Britain. Elucidate by showing the price of a U.S. cell phone in Britain, before and after the change in the exchange rate.
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