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In the diagram use aggregate demand and short-run aggregate supply curves to show an economy at a short-run equilibrium, with a $0.5 trillion contractionary gap when potential output is $9.5 trillion. Identify the equilibrium point and price level. Illustrate how fiscal policy can close the contractionary gap.
Do you think this model provides a plausible mechanism for generating large income differences across countries? Substantiate your answer with theoretical or empirical arguments.
According to the American Metal Markets Magazine, the spot market price of U.S. hot rolled steel recently reached $580 per ton. Less than a year ago this same ton of steel was only $260. A number of factors are cited to explain the large price inc..
Find the yield to maturity of the following securities: A. a security paying $ 1000 in one year, for which you pay $926 today B. a security paying $ 80 0ne year from now and $ 1080 two years from now, for which you pay $1,050 today
Was the wage freeze an example of a price floor or a price ceiling? Use the model of demand and supply to explain why employers began to offer such benefits to their employees.
It is estimated that .44 percent of the callers to the Customer Service department of Dell, Inc. will receive a busy signal. What is the probability that of today's 1,100 callers at least 5 received a busy signal Use the poisson approximation to t..
The labor hours required to produce one unit of wheat in the United kingdom 2. The labor of producing one unit of wheat in the United states is 1. What is the opportunity cost of producing a unit of wheat in the United kingdom
Calculate the inflation rate in the CPI and create a scatterplot that has the unemployment rate on the X axis and the inflation rate on the Y axis. Does your graph look anything like a Phillips curve? Try to do the same for another country. If you..
What incentive conflict was being controlled by these loyalty payments? What advice did Intel ignore when they adopted this practice?
Illustrate the consumer's opportunity set in a carefully labeled diagram. Show how the consumer's opportunity set changes when the price of good X increases to $10. How does this change alter the market rate of substitution between goods X and Y
There is a single difference: we've changed the exponent on At in the production function of the output good so that there is now a diminishing marginal product to ideas in that sector. 1. Provide an economic interpretation for each equation.
What is the total demand curve for the firm What are the marginal revenue curves for the firm What are the monopoly prices and quantities for each group when the firm conducts third degree price discrimination
What is required if firms are to have an incentive to maintain their reputations? How might the good reputation of existing firms serve as a barrier to the entry of new firms?
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