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1. Which of the following characterizes the classical view of the economy?
A. The economy will "self-adjust" to full employment.
B. The economy is inherently unstable.
C. Prices and wages are not flexible.
D. None of these.
2. For an economy, aggregate demand equals:
1. Consumption plus investment plus government spending plus exports.
2. Consumption plus investment plus government spending plus (exports minus imports).
3. Consumption plus investment plus (taxes minus transfers) plus (exports minus imports).
4. Consumption plus investment plus government spending plus net exports (imports minus exports).
The salary in Arizona has decreased by 3% over the last 3 months. During this time, the sale of Snickers chocolate bars has decreased by 2% and gas sales decreased by 1%.
since the AC curve in the problem is upward-sloping everywhere, it is not possible to construct a zero-profit equilibrium given the assumptions of the problem this outcome requires a U-shaped AC curve.
Suppose that the market for radios is perfectly competitive and there is the simultaneous increase in supply and demand. What can be said about the new equilibrium relative to one before the shifts in supply and demand occurred?
Effects of wage stickiness and the shape of the aggrate supple curve,effect of expectations on aggragate demand. Phillips Curve, natiral rate of unemployment, expacted inflation , the relationshipe between AS-Ad and the Phillipe Curve.
2. Assume that imports increase supply. In terms of demand, supply and consumer surplus, why would consumers prefer more imports?
suggest how an economist would approach the problem of alcohol abuse. provide 2 possible solutions to this problem.
analyze the process of forecasting foreign-exchange rates and create a short list of best practices. explain your
Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software If the numbers of home and commercial users are equal, and you cannot distinguish between ..
Are Lay's Potato Chips a normal or inferior good and Doritos a substitute or complement for Lay's, the marginal cost of producing a bag of Lay=s is 60 cents. How much should you charge per bag?
How does the problem of limited and bundled choice in the public sector relate to economic efficiency? Why are public bureaucracies alleged to be less efficient than private enterprises?
Determine to the extent possible the relative market shares of these firms. Discuss the degree of concentration in the industry using CR4, other n-firm concentration ratios, H-H indices, etc.
Suppose that there is a bond that will pay $500 for each of the next three years (the first payment is one year from now). At the end of three years the bond matures and the holder receives the $10,000 face value of the bond. If the market ra..
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