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Find the flaws in reasoning in the following statements, paying particular attention to the distinction between shifts of and movements along the supply and demand curves. Draw a diagram to illustrate what actually happens in each situation.
a. A technological innovation that lowers the cost of producing a good might seem at first to result in a reduction in the price of the good consumers. But a fll in price will increase demand for the good and higher demand will send the price up again. It is not certain, therefore, that an innovation will really reduce price in the end.
b. A study shows that eating a clove of garlic a day can help prevent heart disease, causing many consumers to demand more garlic. this increase in demand results in a rise in the price of garlic. Consumers, seeing that the price of garlic has gone up, reduce their demand for garlic. This causes the demand for garlic to decrease and the price of garlic to fall. Therefore, the ultimate effect of the study on the price of garlic is uncertain.
Define the high school and college graduate dummies in Stata and add them to your regression model, impact on your interpretation of the coefficient on the restaurndummy
Elucidate recommendation should be provided to each state to maximize revenue. Which state was most likely to be following a political unsupportable policy.
What happens to aggregate demand when transfer payments and the taxes to pay them both increase by the same amount?
Illustrate what trends do you see in the data sets. Support your assertions of trends with statistical evidence.
Explain how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply.
Illustrate what would this typical basket have cost in the base year.
The macroeconomic environment discussing the effectiveness of the monetary stragies in the US.
Illustrate what are the three recommendations you would make to him to improve the overall effectiveness of the economy.
Discuss the real output and in ation expressions verbally - New Keynesian model with technology shocks
When 50 employees are used, the average product of labor is 50 and the marginal product of 50th worker is 75.
An ice cream shop read in the local paper in which the elasticity of market demand for ice cream
They produce fewer pounds of choice meat per carcass. More than a third of the animal is ground up into buffalo burger, meat too lean to make good patties.
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