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GM announced that it will close its Oshawa truck plant in 2009 and a Windsor transmission plant in 2010. Ford also plans a 10 percent cut in white-collar, salaried positions. In total, over 4000 direct jobs will be lost. This is chilling news for Ontario because for every job in an assembly plant, there are 7.5 jobs with auto-parts suppliers and other companies. Using appropriate diagrams, answer the following questions.
1) If the unemployment rate and inflation are both rising, can this be explained by a movement along a given Phillips curve? What must be happening to aggregate demand and aggregate supply? What must be happening to the Phillips curve?
2) If the Bank of Canada continues to take expansionary monetary policy, how are the unemployment rate and inflation affected? (Use both Phillips curve and AS-AD graphs in your explanation.)
For a course in international trade, our professor touched on the idea of immiserizering growth. He emphasized that immiserizing growth was a theoretical outcome from specialization of trade and did not provide the class with examples on the global m..
A computer is purchased for P=$86,919, has a service life of n=7 years, and a salvage value of $5,000. At an interest rate of 15%, determine the capital recovery amount for this project.
A commercial bank's reserve assets consist of...
If government revenues drop significantly (and remember all else stays the same, including government expenditures), what will likely happen to bond prices? why?
What are examples of a perfectly/purely competitive firms that you have recently purchased a product from in the last couple of months? Explain how you relate your answer to the market characteristics.
The recent merger of US Air with American Airlines received both national and local attention. The U.S. Department of Justice contested the merger on the basis that it would produce harmful monopoly-like behavior in many airline markets. Develop an a..
1. what does gross domestic product gdp tell us? how did gdp change from 2008? what caused these changes? what is real
Using the slope of the health expenditure function, predict the change in per capita health care expenditures that would result.
Complete the following table by indicating whether or not each scenario is an example of price discrimination. Last-minute "rush" tickets can be purchased for most Broadway theater shows at a discounted price.
Assume that oil prices increase. In the short run we observe.Demand pulls inflation.
The U.S. cigarette organization has negotiated with Congress also government agencies to settle liability claims against it.
Use a supply-demand graph to demonstrate how the quantity and price of medical services are expected to be affected if we went from a world without insurance to a world where the government covered 90% of all medical costs.
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