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Draw an AS/AD diagram
A) Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate and remained at that low level for a year or longer? Explain your answer in a few sentences.
B) Draw an AS/AD diagram illustrating your answer to part (A) That is, draw an AS/AD diagram which shows what happens as an economy operates for a sustained time at a level of actual unemployment that is lower than the unemployment level at potential RGDP. Be sure to label all lines and axes in your diagram clearly.
Illustrate what is the difference among real GDP and nominal GDP. Does GDP accurately reflect our nation's productivity.
The World Bank is presently advising newly industrialized nations on how to encourage growth and they have asked for your help.
The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
Why is it not surprising to find that in an oligopoly which sells a basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?
Lawn mowing services are supplied by a host of individuals in the suburb of Westbrook-Algebraically determine the equilibrium industry price/output combination.
Elucidate what factors besides your quantitative analysis should be considered in making this decision.
Wednesday the price changed to 1.8275. Compute your profit-loss in USD on Tuesday and Wednesday.
Using the tools of analysis developed in this course, demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society economic welfare.
Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
Explain how much should the store charge for an yearly membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy.
Explain how has the introduction of females also minorities in the corporate structure impacted the supply of labor and the economy.
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