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Explain and show graphically using AD-AS diagrams how each of the following would (separately) affect the economy first in the short run and then in the long run. Assume that Canada is initially operating at its full-employment level of output, that prices and wages are eventually flexible both upward and downward, and that there is no counteracting fiscal or monetary policy.
a. The Bank of Canada increases interest rates.
b. A stock market boom raises the wealth of Canadian households.
c. The federal government reduces Employment Insurance payments.
d. More Canadians decide to retire early and leave the labour force.
Provide an example of each of the four different ways industry is organized (the different degrees of market power) and explain why you believe them to be good examples.
Discuss whether horizontal or vertical boundaries have been changed, and whether they were extended or shrunk. Following the September 11, 2001 attacks, the U.S. government established the Department of Homeland Security.
Analysis on price ceilings and floors. Talk about a product that you use that has or had been placed into a price control (floor or ceiling). Now that the economic impact of controls have been explained to you do you think the controls are necessary ..
Suppose that an investor has a choice between buying this security or purchasing a different security that also costs $ 3,000 today but pays off $3,300 with security in one year. Explain in words, how an investor’s choice of which security to purchas..
The market demand is P=100-1.5Q and marginal & average costs are constant at 10 (MC=AC=10) find the monopoly price and quantity. find the perfect competition price and quantity. calculate profit, social welfare(consumer and producer surpluses), and d..
The lower the interest rate, the lower the:
Identify and talk about at least four companies that you regard as having characteristics listed here. Suppose you bought common stock in each of four companies identified here.
If the demand increases for a product like gasoline and there is no change in the supply of gasoline at the same time, then using SUPPLY and DEMAND CURVES, the new equilibrium price might go up or stay the same, or be lowered.
As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this goal: (a) a tax that would effectively increase the p..
Discuss the potential conflicts that might occur between that of IT and Operations Management. How might such issues be addressed and resolved.
Illustrate what is the expected value of the future share price? b. Sharon buys a ticket in a small lottery.
Calculate the present worth of a 4.5%, $5,000 bond with interest paid semiannually. The bond matures in 10 years, and the investor wants to make 8% per year compounded quarterly on the investment.
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