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Which of these would cause the demand curve for bison (American buffalo)
i. An outbreak of mad cow disease among U.S. cattle
ii. Stiff competition among bison producers brings a fall in the price of bison meat.
iii. A famous chef releases a new cookbook including recipes for bison stew, bison burgers, etc.
Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Suppose that there is an "inflation scare," that is, suppose market participants increase their expectations of future inflation.
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
We have learnt that in a perfectly Competitive market, all cost savings from a technological advance are passed along to cnsumer in the form of lower prices
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
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 the aggregate expenditure function shifts in response to the changes in each of the following variables:
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
Illustrate in the graph below the deadweight loss (DWL) that would result if this monopolist were allowed to operate as a profit maximizing firm without regulation.
According to the Solow growth model, a country that increases its rate of capital investment can overcome diminishing marginal returns to capital and achieve sustained high growth over time.
Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP?
The impact of changing from a federal income tax to a federal consumption tax would be:
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