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There are many factors may change AD and AS, and the equilibrium. Please evaluate the effect of the following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output. It seems the best if you draw a graph for each scenario after you explain what might happen to AD and AS.
Congress decides to decrease personal income taxes, and to compensate for the lost revenue they decrease business subsidies.
Describe unemployment and the unemployment rate. Might we be able to say "Job Stats: Too Good to be True?"
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Throughout this course we have discussed the 'agency problem' - i.e., when the interests of owners and managers are not properly aligned.
If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
Analyze the factors that influence the banks desired excess reserve ratio, r e . What would happen to the magnitude of r e if:
A tariff is simply a tax on imports. Use our model of the excise tax (with diagram) to describe why domestic firms request that tariffs be imposed.
We have learnt that in a perfectly Competitive market, all cost savings from a technological advance are passed along to cnsumer in the form of lower prices
What do you regard as the main weaknesses of the Ricardian or Classical model as an explanation of the trade patterns? Why do you regard them as weaknesses?
The impact of changing from a federal income tax to a federal consumption tax would be:
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