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(a) Plot crowding out for the following situations on a graph, and explain why you get the results:
(i) Perfectly inelastic ID curve (vertical) & perfectly elastic SS curve (horizontal).
(ii) Perfectly inelastic SS curve (vertical) & perfectly elastic ID curve (horizontal).(b) Under which of the above two scenarios should the government use expansionary fiscal policy to boost the economy during a recession?
Determine how velocity is affected by an increase in real income (Y), an increase in the nominal interest rate, and an increase in the price level.
In the analyses below, when drawing your diagrams assume that students can choose among only two products on campus, namely tobacco and food.
Explain the difference between a normal good and an inferior good. Would your answers to question 7 change depending on whether this good is a normal or inferior good? Why?
When do assumptions create in conjunction with economic theorizing have to become realistic? Can unrealistic assumptions provide useful outcomes?
First ignore the implicit constraints: 8 i; xi 0 and give the FOCs. Then take them into account and give the Kuhn-Tucker Conditions. Simplify your expressions as far as you can.
there are also more than 475 bilateral and regional trade blocs, including the North American Free Trade Agreement and the European Union, which provide special trade preferences to member nations.
Prepare a brief paper defining direct and indirect channels of distribution. Discuss what are the key advantages and disadvantages of each channel for your company?
What is the effect of the United Arab Emirates' increasing sovereign wealth funds on GDP?
Is there too much or too little smoking? Explain why smoking bans on bars and restaurants do not efficient solve an externality problem.
Draw the impact of this illness on the equilibrium de?ned in exercise 5. How will it change his equilibrium allocation of earnings and labor-leisure?
The maintenance cost for both models is $100 per hour. The variable operating cost is $346 per hour for Model A and $290 per hour for Model B. Due to obsolete parts, there is a sunk cost of $2700 for model A and $1900 for Model B.
Suppose a firm in the short run under perfect competition with P=250, TC=1,000 + 100Q + 2.5Q^2 , and MC=10+5Q-Find out the level of output that the firm needs to produce to maximize profits?
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