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Suppose the economy is in equilibrium when there is a change in environmental policy that bans all pesticides and herbicides on farmland. We would expect to observe
A. a decrease in both real output and the natural rate of unemployment.
B. a decrease in real output and an increase in the price level.
C. a decrease in real output and an increase in the natural rate of unemployment.
D. a decrease in aggregate supply and an increase in aggregate demand.
Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in the society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social ..
In terms of aggregate supply, a period in which nominal wages and other resource prices are unresponsive to price-level changes is called the A. long run. B. short run. C. very long run. D. immediate market period.
Imagine you are in charge of development for a developing country and were approached by a multinational corporation interested in locating in your country. Identify some of the benefits and some of the costs to the host country from allowing a multi..
Illustrate what is the value of goods and services purchased by the government of Numidia.
The traditional U.S. auto industry (the Big Three) has struggled for many years against competition from foreign-owned automobile companies. Their struggle was dramatically heightened in 2008 with the world-wide credit crunch and economic slowdown. A..
Why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective?
when markets for goods as well as services gain access to the Internet, more consumers and more businesses participate in the market.
Discusses an example of a regulatory measure which was supposed to serve public interest, but in reality serves private interest.
According to Classical Economists which type of fiscal policy financing produces inflation?
What is the cost of regular unleaded fuel in your town? What are some contributing demand and supply factors to the differences in fuel prices around the country?
A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive equilibrium of market.
Illustrate what output would be produced, Illustrate what would total profits be also Illustrate what rate of return would the firm earn in its asset base.
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