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Description of Long-Run Equilibrium
Is there a unique rate of inflation that corresponds to long-run equilibrium? What determines the rate of inflation when the economy is at long-run equilibrium?
Economic forecasters predicted that consumption also GDP would increase because of higher refunds on income taxes.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
Illustrate which national financial policy programs are best for addressing the problems in the U.S. economy
Illustrate what can you say regarding your price elasticity of demand of apples
Theory Galbraiths of consumer demand has an important implication in terms of underallocation of resources to public goods.
Give the before-tax charcoal price and quantity exchanged. Give the after-tax charcoal price to buyers, the quantity exchanged, and total tax revenues.
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.
What would be the effects on employment and unemployment given the actions taken by the Fed.
Use the expenditure approach to comput GDP. Use the income approach to calculate GDP.
Explain how a change in investment can have big impact on GDp causing nationwide slump. Recall that investment is "small' relative to the whole economy.
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