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During the 1990’s, the U.S. economy experienced strong growth, full-employment, and very low inflation rates. How could you explain this, using the AD/AS model? In other words, what shifts in AD and/or AS would explain this outcome? Think about this not just in terms of AD and AS, but also in terms of the specific changes that can lead to shifts of those functions.
In competitive equilibrium, what is the ratio of the price of bananas to the price of tomatoes. Illustrate what is the equilibrium quantity of bananas and tomatoes consumed by Marilyn and Chen.
Elucidate why is private property, and the protection of property rights, so critical to the success of the market system.
Show an understanding of John Locke's economic theory and then provide an analysis of its ethical aspects. Make the focus be on the Ethics of the theory, and explain the reasons behind any ethical claims.
The exchange rate of the $ has increased by 20% or more against the currencies of major US trading partners during the past year. Do you think the Fed welcomes continued strengths in the exchange value of the $ at this time? Explain your answer caref..
The demand function for a certain brand of CD is given by p=-.01x^2-.2x+11 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the producers' surplus if the market price is set at ..
Coming amid continued turmoil in the financial and credit markets, the report sent stocks lower, with the Dow Jones Industrial Average falling 146.70 points Friday to close at 11,893.69.
If international trade increases prices, employment, and wages among more competitive and efficient producers but has the opposite effects among less competitive and efficient producers, why should anyone listen to opponents of international trade? E..
Consider the case of exogenous differentiation in a Bertrand Model. There are two firms (1 and 2) with marginal cost equal to zero, and the following demands: Q1 = 1 – p1 + c p2, and Q2 = 1 + c p1 – p2, where c is a positive constant.Find the equatio..
"Neither monetary policy nor fiscal policy alone can be effective in formulating sound economic policies for recession." Do you agree or disagree?
Draw an accurate figure showing how the glass firm minimizes its cost of production. What is the equation of the (long-run) expansion path for a glass firm? Illustrate this path in a graph. Derive the long-run total cost curve equation as a function ..
If debt accumulates too fast and investors start to worry about [higher risk of default/ higher government revenues/ reduced risk of default], we can suppose that the [price of the government’s bonds/ the effective real interest rate paid to bondhold..
Explain how these allocation methods may affect quantity demanded, equilibrium price, and quantity supplied. Are these allocation methods more or less efficient than other methods?
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