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Question about Aggregate Demand Curve
1. What is the effect of an increase in the quantity of money? What is the difference between real variables and nominal variables? Are these variables affected by the quantity of money? If so, how?
2. What is the difference between the real exchange rate and the nominal exchange rate? If the nominal exchange rate goes from 120 to 160 pesos per dollar, what has happened to the value of a dollar?
3. Why does the aggregate demand curve slope downward? Give at least three reasons and examples when addressing this question. Identify an event that would shift the AD curve and which direction the AD curve will shift.
4. Assume that the federal government increases spending on public works programs, such as highway construction, by $40 billion. How does this change in spending affect the aggregate demand curve? Explain why the shift may be higher or lower than the original $40 billion.
Lawn mowing services are supplied by a host of individuals in the suburb of Westbrook-Algebraically determine the equilibrium industry price/output combination.
Assume labor is the only cost of production and labor coefficients (hours of labor required per unit of output) in MACONDO and KRYPTON for each good are as follows:
Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase.
What could a president or other government policymaker do to raise a contry's standard of living.
President Obama pushed his massive fiscal stimulus package of $787 through the Congress and later passed by the House and Senate, whose centerpiece was spending most of this stimulus funds
Graph the accompanying demand data, and then use the midpoint formula for Ed to determine price elasticity of demand elasticity of demand.
Consider a homogenous-product Cournot duopoly model in which Q is the market output-Determine the best-response function for each firm. Draw a diagram showing the two best-response functions.
What would it not be better to nationalize public utilities as some European countries have done. Explain.
Explain what would happen to the demand for Motorola picture phones if the price of digital cameras rose
Emily makes cartoons whioch she sells to her classmates. Her average product of labor is 5 cartoons every hour if she works for one hour, four per hour
Describe the Soviet Rapid Development Model
Illustrate is the point cross elasticity among steel and aluminum. Are steel and aluminum substitutes or complements
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