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1. Does the Aggregate Demand (AD) curve always slope downward? Discuss and use explanations (interest rate effect, wealth effects, open economy effect).
2. The Aggregate Supply (AS) curve slopes upward to reflect the profit motive of businesses. So, why there are two versions of the AS curve( i.e. short run and long- run). Discuss.
3. Does Aggregate Demand and Aggregate Supply always occur at full-employment level?
a) If yes, will there be some unemployment? Explain
b) If no, then the actual real GDP may be different from the potential real GDP. When the actual and potential GDP are not the same, then the economy is either in a recessionary gap or inflationary gap. Explain
Graphically elucidate how electrical monopolist would determine its profit maximizing price and output level. Identify the area of consumer and producer surplus for the profit maximizing monopoly.
write a paper that uses game theory to to set up a game designed to help a consumer decide whether to buy life
Country Z is a developing country that is facing problems of deforestation.
At what price and quantity would Gringle maximize revenue? What is its maximum revenue? At what price and quantity would elasticity of demand equal -2.4. What is the P/MR at this point? Assume Gringle wants to mark up its product by 40% above margina..
q1. marital sorting and income inequality. how have marriage trends widened the gap between low-income and high-income
In a Cournot equilibrium, where both firms produce positive amounts of output, which firm do you expect to produce more. Explain your answer.
q1. kieso company borrowed 710000 on a 120-day note at 14 percent interest. the money was borrowed for 45 days in 2011
The Commerce Department revised its estimate of real GDP to $3.877 trillion, up from the earlier estimate of $3.835 trillion. Before adjusting for inflation, GDP was $4.603 trillion, up from $4.523 trillion.
What causes movement along AD curve? What causes a shift in the AD curve? What are the factors that affect consumer spending ( C)? What are the factors that affect changes in Investment spending (I)?
The government decreases current taxes, while holding government spending in the present and the future constant.
In standard macro model, it is usually time preference that causes positive interest rate. But is there anything to do with risk aversion of utility function that causes existence of positive interest rate?
How will this affect output and unemployment in the long run? c) Use an AS-AD graph to show the transition from the short run to the long run.
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