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Draw a short-run aggregate supply curve that gets steeper as real GDP rises.
a. Explain why the curve has this shape.
b. Now draw a long-run aggregate supply curve that intersects a short-run AS curve. What is the rel tionship between short-run AS and long-run AS?
The plan is to make an initial deposit today and then deposit an additional $2,500 a year for the next three years, starting one year from today. The account pays a 3% rate of return. How much does the Bluebird Company need to deposit today.
Managerial capitalism is a phrase we hear less today than in the Golden Age. Why do you suppose it has dropped out of fashion? What changes do you think might bring it back?
Suppose the MPC is 0.75 if the government increasesexpenditures by $200 billion how far does the economy grow if the government decreases taxes by $200 billion how far does the economy grow
where C is aggregate consumption, I is aggregate investment, Y is aggregate income, and u is a disturbance term. On the assumption that I is exogenous, derive the reduced form equations for C and Y.
The marginal tax rate for the firm is 40 percent. Based on the net present value criterion, should the firm undertake the training program
Which investment is the riskier? Why? (Hint: Remember that the risk of an investment depends on its context.)
how has the world wide allowed supported the establishment
A new president, who promised during the campaign that she would cut taxes, has just been elected. People trust that she will keep her promise, but expect that the tax cuts will be implemented only in the future.
Potatoes cost Janice $1.10 per pound, and she has $6.00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14 the third pound is worth $1.05, and all ..
a private-garage owner has identified two distinct market segments short-term parkers and all-day parkers with
Suppose the world price of crude oil is $15. What would be the equilibrium price and quantity under free trade? Find the price of oil, the total quantity traded, and the domestic quantity supplied. Assume you can treat foreign supply of oil as inf..
Computer Products Corp. sells peripheral equipment used by both private businesses and the government. Due to a recession, Computer Product's sales have declined by 100,000 units and it now has 200,000 units of excess capacity.
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