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Q1. If the aggregate-demand curve is given by the equation P=400-(2xY) and long run aggregate supply=100 the long run equilibrium price levels equal?
Q2. Explain how has the recent natural disaster in Japan influenced the provider of Toyota automobiles? Illustrate the effect using the demand and provide model?
Q3. Country A has marginal product of labor of 10 and wage rate of $20/L. Country B has a marginal product of labor of 2 and a wage rate of $5/L. Which country has the lower marginal cost?
If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved.
Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.
Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt.
Calculate the new cost earned by sellers, the cost paid by clients, as well as the equilibrium quantity sold in the market.
Law of demand does not hold since attendance at the major league parks has dropped while at the same time ticket prices have fallen.
In 2003, when music downloading first took off, Universal Music slashed the prices of CDs from an average of $21 to an average of $15.
Assuming the policymakers do nothing, use the diagram below to show the effects of the consumer pessimism on aggregate demand.
Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q1 units of output.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
Each of the estimated coefficients statistically significant at the 95 per cent confidence interval. What is the optimal output level.
Explain how the MAS have successfully used exchange rate policy to achieve price stability for the last two decades.
You are asked whether current antipoverty policy meets three generally accepted goals of helping, minimizing cost, preserving work incentives also what changes you would favor and why.
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