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Each of the following headlines describes an event that will have an effect on desired aggregate expenditure what will be the effect on equilibrium national income? In each case, describe how the event would be illustrated in the 45° line diagram.
a. "Minister takes an axe to the armed forces."
b. "Russia agrees to buy more Canadian wheat.
c. "High-tech firms to cut capital outlays."
You will be asked to collect five (5) newspaper articles relating to subjects we are covering in the class. As we cover the various chapters you should be actively searching newspapers/magazines to find articles.
Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?
Compute the steady state levels of population. How might we transition between these two steady states and growth during the Malthusian regime?
In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.
How might there be increase in total spending on a child's education in response to providing a fixed level of education?
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
Answer whether the following statements are true or false, explaining your answer in each case.
Assume that there're 10 million workers in Canada and South Korea and each worker in Canada and South Korea can manufacture four cars per year.
The average weekly earnings of bus drivers in a city are $950 with a standard deviation of $45. Assume that we select a random sample of 81 bus drivers.
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
Problem on standard deviation
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