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Q. Assume which the economy is in a long-run equilibrium.
a- Draw a diagram to illustrate the state of the economy .Be sure to explain how aggregate demand, short-run aggregate supply, and long-un aggregate supply.
b-Now Assume which a stock-market crash causes aggregate demand to fall. Use your diagram to explain how Illustrate what happens to output and the cost level in the short run. Illustrate what happens to the unemployment rate?
c- Use the sticky-wage theory of aggregate supply to Explicate Illustrate what will happen to output and the cost level play in this adjustment? Be sure to illustrate your analysis in a graph.
A farmer determined a natural gas preserve on his property.
Eastman Kodak filed for a bankruptcy in January 2012. Using our analytical framework of nine areas of interest introduced in class explain the main causes of the company's misfortunes.
How is this shifting of AD curve going to affect the price level and output level of the economy.
Will price be lower or higher as such an agreement in long-run equilibrium than would be the case if firms didn't collude.
One main difficulty examined in the book is the cleanup of hazardous waste sites.
During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.
Assume that you live in a simple economy in which only three goods are produced and traded.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
How might you construct a measure of the "change in the price level" What additional information might you need to construct your measure.
How much equity would she have had in the house at the time of its sale.
Briefly explain the meaning of f test why do you think this test is considered to be more important in multiple regression analysis than it is in simple regression analysis.
Suppose you are the manager of a home-building company and the government is considering eliminating the deduct-ability of mortgage payments interest.
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