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Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. For each event that does shift a curve, use a diagram to illustrate the effect on the economy.
a) Households decide to save a larger share of their income.
b) Florida orange groves suffer a prolonged period of below-freezing temperatures.
c) Increased job opportunities overseas cause many people to leave the country.
Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No new working c..
marginal rate substitution kim enjoys eating muffins and cones.the following graph display one of kims indifference
As the price level rises
Which of the following pricing strategies is NOT used in markets with special cost and demand structures?
The Johnson Corporation produces 1000 wood cabinets and 500 wood desks per year, for total cost of $30,000. It has been estimated that if the firm produced 1000 wood cabinets only, the cost would be $23,000, and if the firm produced 500 wood desks on..
Many police officer positions being advertised today require the applicant to have a college degree even though the tasks of a police officer rarely call upon college course material. From an economics perspective, why don't police departments increa..
What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
Metro Airlines runs 10 flights per day at a total cost of $50,000, which includes $30,000 in fixed costs for airport fees, airplanes, and the reservation system and $20,000 invariable costs for flight crews, fuel, baggage handlers, and food service
A $10,000 mortgage bond that is due in 20 years pays interest of $250 every 6 months. The bond rate is closest to
Explain and graph how the economy can “fix itself” and move to the long run equilibrium? Will the price level at the long-run equilibrium be greater than, less than, or equal to 110?
In many modern U.S. industries, the following patterns seem to hold: Small firms are more likely to outsource production of inputs that are large firms; “Standard” inputs are more likely to be outsourced than “tailor-made” inputs.
Changes in tastes reduce the demand for wheat substantially. What happens to price and output in the market for wheat? What happens to the price, output, and profits of the individual wheat farmer in the short run? Illustrate with diagrams.
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