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1. Describe how the concept of scarcity affects the aggregate supply curve.
2. Assume the government mandates that all firms over 50 employees must provide an increased level of health care benefits. Could you please describe what effect this will have on the aggregate supply curve.
3. Assume the economy is at equilibrium and output is at 20,000. A rightward shift in the supply curve shows that the economy can produce 26,000 at the same price as before. Where will output be at the new equilibrium? Above the new 26,000 possible output, equal to the new 26,000 possible output, or below the new 26,000 possible output? Why?
4. Suppose the government increases the retirement age to 75. That is, workers will not be eligible for full retirement benefits until they are 75. What effect will this have on aggregate supply?
So many states provide firms with an investment tax credit that effectively reduces the price of capital.
Utilizing an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment
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Elucidate the historical relationship between unemployment and inflation.
Ignoring transaction price explain how much would a buyer have to pay for one call option contract.
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In 2008-2009, the nation economy retrenched in the wake of a global financial crisis. Did the globalization of capital markets contribute to this crisis.
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