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Economics in the Current News
Take some time to think about the ways in which your learning in this class relates to the real world. Has the knowledge you gained been valuable in helping you understand or evaluate events or policies? Are there any current events in the news that you can directly link to concepts or theories covered so far?
Guided Response:
Review the popular news websites listed in the Current Events required readings section for this week. In 300 words or more, discuss one current event article and explain how economic theory can be applied to analyze the information presented. Make sure to provide an APA reference to your article.
Explain how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply.
Give at least three explanations of why economic reasoning would argue that this is to be expected.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.
As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
Explain why Brownstown's management was reluctant to release this information to its lenders.
Coimpute how much the shortage or surplus is if there is any.
Give three reasons why firms produce in Germany rather than in a lower-wage country.
Elucidate what you can do, if the best technology was used to produce the components of the system to achieve the .99 reliability.
Compute the employment rate (i.e., number employed: population) in each year? How can employment rate may go up or down in the unemployment rate stays the same? How can employment rate go up if unemployment rate also goes up?
Describe three (3) ways we can use macroeconomic analysis, with one (1) original example for each way. Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market.
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