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In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of the aggregate supply curve?
Equate the following cash flows to equal cash flows in years 5,6,7,8 and 9. Let i = 8% per year. Use a uniform gradient factor in your solution.You have the following end of year cash flows: Y0 = $400 Y1 = $300 Y2 = $200 Y3 = $100
Nancy Tai has recently opened a revolving charge account with MasterCard. Her credit limit is $1000, but she has not charged that much since starting the account.
Compute the gain from trade but you should discuss how comparative advantage is used.
An economy can be stimulated by printing more money. Illustrate what are the dangers of doing that. Inflation can be decreased by reducing the money supply.
Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.
Create a supply and demand graph and identify areas of customer’s surplus and producer surplus. Given the demand curve, determine what impact will an risee in supply have on amount of customer surplus shown in your diagram?
Illustrate what are the effects of the current tax policy on US businesses in the short-run and in the long-run.
Elucidate what was the actual price elasticity before the cartel was formed.
On a typical day, Park Place Clinic writes 1,000 dollar in checks. It generally takes four days for those checks to clear.
The US cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement.
If Congress has determined that the budget will not be completed by September 30, it should prepare appropriations bills to be reviewed by the President?
Over the course of product life cycle, as the firm moves through the sequence of oligopoly, monopolistic competition, monopoly, and pure competition, the profit opportunities diminish.
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