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Inflation, investment, supply curves
Explain why a decrease in aggregate demand results in a lower level of employment, given a fixed aggregate supply.
Distinguish between two sources of inflation. Explain why steady inflation is likely to be less harmful to an economy than a situation which inflation rates vary alot.
"A rise in planned investment spending in an economy will lead to a rise in consumer spending." use the concept of the multiplier to verify this statement.
In constructing the short run aggregate supply curve, what is meant by the term "short-run"? How does this concept differ from the long run and what is the effect on industry of the difference in terms of planning? Explain the role of labor contracts on movement along the SRAS curve
Over the past recent months it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month.
explain international trade wars can take place and competition among nations is reduced.
Illustrate what are the four stages of the Business Cycle. Compare and Contrast five internal and external Business Cycle theories.
Explain how would you relate the hiring practices of that industry or industries to fluctuations in the business cycle.
Utilizing an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment
Explain why does the government support public education when the private sector also provides this service.
Illustrate what are the three major categories of revenues for the federal government. Please comment on each and indicate their relative importance to each other.
Write an equation that expresses the money supply multiplier (for M1) in terms of its three determinants.
Prior to opening his hardware shop Bob worked as an investment banker earning $175,000 each year. He pays his employees $150,000 per year.
Compute the implied arc income elasticity of demand. Holding all else equal, would a further increase in price result in higher or lower total revenue.
The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve.
Explain how many units of the variable innpout should be used to maximize profits. What are the maximum profits this firm can earn.
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