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1. Suppose that aggregate demand increases by $1 billion, what would happen to equilibrium RGDP? Explain.
2. When the price level is falling, we experience deflation. This occurred in Japan not to long ago. What do you believe causes deflation? How might individuals and businesses react to deflation in a way that worsens it?
3. What would changing the rules to Employment Insurance payments so that it was more difficult to collect, do to potential GDP?
4. What can governments in Canada do to encourage economic growth?
Assume the market for heating energy. This year it is forecasted to be an unusually cold winter. Explain what will happen to the market for heating energy. Identify the effect on equilibrium quantity and price. What happens to the number of firms in ..
What is the cost of regular unleaded fuel in your town? What are some contributing demand and supply factors to the differences in fuel prices around the country?
Do you think illegal drug interdiction or successful drug education is the better policy to reduce drug addiction in the United States? Do you think simultaneous implementation of both policies is best? Why? Provide specific examples to support your ..
The supply curve for portable charcoal grills shifts
Which one of the following government actions is intended to generate positive externalities.
Which of the following statements is true regarding trade in agriculture? The united states exports almost 50 percent of its agriculture production. In general, governments let agriculture markets operate on free trade principle. nations do not mind ..
You are a financial planner attempting to evaluate your investment strategy to recommend to clients. Based on your economic background, you believe the Fed is going to loosen monetary policy.
Consider the following sequential ZSG. First, nature chooses heads or tails, each with probability one-half. Player 1 then sees nature’s choice, and chooses heads or tails. If player 2’s choice matches nature’s choice, player 2 wins a dollar from pla..
Evaluate the institutionalist economists. Determine which economist you feel made the most significant contribution to economic theory. Justify your selection.
Suppose you have an asset that costs $11 in time period zero and has an IRR of 18%. With a retained earning rate of 5% on your remaining $7, what is the highest loan rate that would support investing in this asset?
Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
The price of good A is Eur 20,the quantity demanded is 500 units at yhis price,and price elasticity of demand is Ep=1,8,then a reduction in price of the good by eur 5 would increase the total revenue of seller by
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