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"The bursting of the housing bubble and the Panic of 2008 caused both businesses and households to cut back on their spending in 2 ways. 1st financial market disruptions made it difficult for businesses to borrow funds for investment spending and for consumers to borrow funds for purchasing housing and motor vehicles. Second, the financial crisis increased the level of uncertainty about the expectations that led to a reduction in autonomous spending also spending self-determining o/ps." Source: Robert H. Frank, Ben S. Bernanke, Louis D. Johnston and Nilss Olekalns in 2010, economy update 2010, Sydney: McGraw-Hill.
Elucidate how each change mentioned in the article impacts upon the aggregate expenditure model and then that model elucidate how such changes result in a new equilibrium in. Your answer should encompass discussion of changes to the level of inventories.
Exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million.
Based on the revised (1997) merger guidelines, would the Antitrust Division likely challenge a proposed merger between.
Assume that the firms form a cartel to maximize total industry profits. Determine the optimum output as well as selling cost for each firm.
Converse alternatives to GDP as a measure of economic benefits in a current economy.
Compute the coefficient of variation for each project and Classify the preferred project according to this criterion.
Carefully explain how these two deficits are related economically so that changes in one are reflected in changes in the other.
How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12.
All farmers in Trivialand are self - employed and sell all of their wares to Super Duper. Elucidate the costs incurred by all of Trivialand's busines.
How much income will each acre generate. What are the TR moreover MR for each acre.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
Evaluate the results of the regression equation tells managers and how it is likely to impact decisions made related to maximizing profitability.
What are the strengths and weaknesses of the measure of welfare used by many economists: consumer welfare plus producer surplus.
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