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Assume the economy is in long run full employment equilibrium with unemployment at the full employment rate of 6% and inflation of 4%. In this situation what would happen to aggregate demand and aggregate supply, unemployment, and inflation should the federal government cut business and individual taxes by 4 trillion dollars next year? Use the Phillips Curve and aggregate demand and aggregate supply to support your answer.
Point out how each of the following would shift the 1) average-variable-cost curve, 2) average-fixed-cost curve, and 3) average-total-cost curve. Mention two types of businesses that their costs are mostly variable costs, and list 2 types of busin..
In an industry, there are only two firms. They are producing identical products that compete in a market by choosing their quantities q1 and q2. Calculate and draw the best response function for firm2
If markets do not self-adjust, how can a decline in spending lead to a negative process that ruins an economy? How are they related to the Keynesian Cross and/or the Aggregate Demand/Aggregate Supply Diagram
As for his personal expenses, his apartment costs him $4,800 per year and his personal bills are an extra $1,200 per year. What is Mark's opportunity cost of running the business?
Prefer this existence of incomplete specialization. Which is (are) inconsistent with the incomplete specialization we observe in China.
Given the choices of world real interest rate in the above graph, the world real interest rate that most likely occurs when this country runs a trade surplus
Holy digits Batman! The Riddler is planning his next caper somewhere on Pennsylvania Avenue. In his usual sporting fashion, he has left the address in the form of a puzzle. The address on Pennsylvania is a four-digit number where:
Appalachia Beverage Corporation, is planning alternative proposals for expansion into the Midwest. Suppose that a wholesale price of $5 per case, compute the breakeven output quantities for each alternative.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find out that consumers won't buy it because they don't like the taste. From an economic prespective, the company should
Suppose your telephone plan charges you $25 per month plus ten cents per minute for long distance calls. Write an equation that describes your monthly telephone account.
In what kind of economy is a central planning board or commission typically used to answer the basic economic questions?
Explain whether the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved- regulating cable TV prices.
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