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1. Using appropriate AD-AS diagrams explain how
(a) a deflationary gap
(b) an inflation-ary gap may occur.
2. How might governments attempt to influence long-run aggregate supply and there-fore potential GDP?
according to the cruise ship examplea what are the real and what are the nominal objectives goals of macroeconomic
Suppose that an investor has a choice between buying this security or purchasing a different security that also costs $3,000 today but pays off $3,300 with certainty in one year. How is an investor's choice of which security to purchase related to..
How does this affect the market for peanut butter?
What agreement will the mill and the farmer negotiate if the mill has the right to pollute? What if the farmer has the right to clean water?
Repeat the logarithmic regression in Exercise 5.1, adding the logarithm of the size of the household as an additional explanatory variable. Interpret the results and perform appropriate tests.
Under pressure from apple growers, the government decides to put a per-unit subsidy the apple market that results in a new equilibrium quantity of 10 lbs of apples. A small country that currently does not trade with the world
A woman deposit $3500 dollars in a retirement account every year. If her account pays an average of 6% interest and she makes 38 deposits before she retires, how much money can she withdraw in 20 equal payments beginning one year after her last de..
Assuming the cost curves have the usual shape, is the dollar difference between the average total cost and the average variabe cost greater when the output is 10,000 tennis balls or when the output is 30,000 tennis balls
Setup a two-variable regression model (i.e. write down the PRF) to examine the impact of per capita disposable income on real per capita gasoline expenditures.
Suppose 500 people were surveyed, and of those 500, 450 were working full time. Of the 50 not working, 10 were full-time college students, 20 were retired, 5 were under 16 years of age , 5 had stopped looking for work because they believed there w..
Making dresses is a labor-intensive process. Indeed, theproduction function of a dressmaking firm is well described by theequation Q = L - L2/800, where Q denotes the number ofdresses per week and L is the number of labor hours per week.
Some analysts have argued that this poses a problem for the United States, because our comparative advantage lies in things we cannot sell on world markets. What is wrong with this argument?
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