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Assume that the economy is initially in equilibrium at potential GDP. Use an AD-AS graph to show the effect of an increase in government purchases on the price level and the output level in the short run and in the long run. Explain what is happening in your graph.
A significant difference between an administrative agency hearing and a court hearing is that... a binding decision can only be made by an agency. OR there is no right of trial by jury before an agency. OR a court hearing allows no public interventio..
Julio receives utility from consuming food (F) and clothing (C) as given by the utility function U(F,C)=FC. In addition, the price of food is $2 per unit, the price of clothing is $10 per unit, and julio's weekly income is $50. What is julio's margin..
How big would that budget have to be before he would spend a dollar buying a first cup of coffee.
The demand function for a firm’s product is Q = P^(-3). The firm’s marginal cost of production is constant at MC(Q) = 12. Calculate the elasticity of demand, as a function of Q. Based on your answer to (c), what is the firm’s profit-maximizing price?
A coal-fired power plant can produce electricity at a variable cost of $0.07 per kilowatt-hour when running at its full capacity of 30 megawatts per hour, $0.16 per kilowatt-hour when running at 20 megawatts per hour, and $0.24 per kilowatt-hour when..
According to the political business cycle theory, if the Fed wanted to see a President re-elected, prior to the election it might.
Substantially dependent on minimally dependent on totally dependent on independent of
Explain graphically how isoquant-isocost analysis can be used to derive a long-run labor demand curve. Distinguish between the substitution and output effects. How might a wage differential between two regions be reduced via movements of capital to t..
An electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and maintain in the first year and $3000 in each of the subsequent years. At the end of 4 years, the firm changed their inspection procedure, eliminating ..
During droughts, cities often impose water use restrictions on consumers. Suppose Rusalka has preferences for Water (W) and other goods (X) given by the utility function: U(W, X) = WX. Suppose the government imposes a quota limiting water use to a ma..
Research and discuss the foreign exchange market in terms of both the value of the currency over time and any regulations affecting the currency for China in 2016. Please provides References and any graphs or visualizations available.
The inflation-free rate (real rate) is 2.3% per year and the inflation rate is 2.03% per year. The effective interest rate (market rate) is therefore
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