Inventory systems quickly transmit large demand

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Q1. Explain why do some economists consider that better inventory control software as well as systems might help to decrease the frequency and severity of recessions caused by mild demand shocks? Explain how could those same inventory systems quickly transmit large demand shocks directly to sudden, deep recessions?

Q2. The Fair Labor Standards Act establishes a federal minimum wage of $7.25. Law of 1969 recognized greatest rental rates for apartments in New York City. Explicate how these controls can lead to shortages, especially in the long run. Critics of New York City rent manage system contend wealthy.

Reference no: EM138305

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