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Q1. Consider and economy with output equal to the natural level of output. Now Assume there is an increase in unemployment benefits.
a. Explain how the effect of an increase in unemployment benefit on the position of AD and AS curves in the short run and in the medium run.
b. Explain how will the increase in unemployment benefits affect output and the price level in the short run and in the medium run?
Q2. If the consumption function is C= $200 billion + .9Y, Explain how more do consumers spend with incomes of $3 trillion? Explain how more do they save?
Assume that PY increases by 15%, what percentage effect on quantity demanded of product X could be expected.
Among different market structures, which one do you believe provides the highest possible return for a new company as well as why.
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Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
The government plans to rise state spending by $2bn in the next fiscal year.
An intraocular lens manufacturing is in the qualification process of a polishing machine.
Youngstown sold most of its output in the Midwest. Was this fact relevant.
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