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Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment.
A) Draw an aggregate demand/ aggregate- supply diagram to show the short run effect of this optimism on the economy. Label the new levels of prices and real output. Explain in words why the aggregate quantity of output supplied changes
B) Now use the diagram from part A) to show the new long-run equilibrium of the economy. (Assume there is no change in the long-run aggregate-supply curve). Explain in words why the aggregate quantity of output demanded changes between the short run and the long run.
C) How might the investment boom affect the long-run aggregate-supply curve? Explain
Analyze the different stakeholders (i.e., government, three (3) affected parties) that are involved in the externality, and identify what their roles are with regard to the externality.
The demand for shoes can be expressed as Q = 100 - 10P., where Q is quantity and P is price.Using the midpoint method, what is the price elasticity of demand when the price of shoes goes from $5 to $6?
Suppose that one must divide $1,000 among 100 students. Which divisions are efficient?
Suppose the demand and supply curves for basketballs are given by: Qd = 200 – 5P. Using the demand and supply functions above, the equilibrium price of a basketball is ____, and the equilibrium quantity is ____. On the same graph above, show the effe..
there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased.
Talk about the ramifications involved in conducting business under both/either scenario.
q.suppose you have a 2000 bond that makes an annual interest payment of 75. use this information to answer the
Clarify what action monetary policymakers must take for the actions of fiscal policymakers to have no effect on real income.
Compute the numerical elasticity of long-run demand. Is it unitary, elastic, inelastic, etc. Explain why would consumers demand 0 minutes in the long run if the price was $.30 per minute.
Does the estimated equation provide evidence in support of the CAPM for stock
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a fictional survey shows a decrease in drug use by young people in brooklyn. in the ensuing debate two hypotheses for
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