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Explain whether each of the following events shifts the short0run aggregate supply curve, the aggregate demand curve, both, or neither. for each event that does shift a curve draw a diagram to illustrate the effect on the economy
a- Household decide to save a larger share of their income.
Capital and labor are perfect complements in production for this firm - production process
What is the opportunity cost of investing in capital? Do you think a country can "over invest" in capital?
What is the growth rate of nominal GDP in the economy?An adverse supply shock raises the inflation rate associated with every output ratio by 3 percentage points. Draw the new short-run Phillips Curve.
Organization where the market demand is given by QD = 1,500 - 40P, in the long-run equilibrium there will how many firms.
If there is no currency drain and all funds loaned out by this bank are deposited back in this bank, what are the bank's excess reserves, if any, after the new deposit has been made and how much new loan this bank might be able to create.
As an employee of World Bank you've been asked to research the needs of a country with a particular economic concern.
With a U.S. marginal propensity to consume, assumed at 1/2, what will happen to the following with the neoclassical model of national income if the Bush Tax Cuts expired
What is the difference between a medium of exchange and a store of value and what is the difference between commodity money and fiat money?
Most engineering students own a computer. What cost have you incurred at each stage of your computers life cycle Estimate the total cost of ownership. Estimate the benefits of ownership. Has it been worth its.
Although all appliances are given a unique serial number when manufactured, until this year Armonco had no capability of determining how often any appliance was brought to an authorized service facility.
Imagine one of worst case scenarios realizes in October 2012, in which Greece does not belong to the eurozone any more, so Greece goes back to use of its own currency, Greek drachma.
State the essential difference between the classical and Keynesian schools of thought. If you were a public policymaker and received conflicting advice from a classical and a Keynesian economist, how would you choose Explain.
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