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Please use classical model AD-AS analysis (i.e. state AD, SRAS or LRAS shift rightward or leftward) to predict the impacts on price level and real GDP in the U.S. for each the following event:
(a) Government increases defense spending
(b) Hurricane damages all Gulf Coast states
(c) Imported oil gets cheaper.
(d) Congress approves a one-time tax rebate.
(e) Technology improvement occurs in crude oil extraction.
the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
You own a fresh vegetable stand. Last week you decided to raise your carrot prices from 79 cents per bunch to 99 cents per bunch. Subsequently, you noticed that several of your regular customers were buying 2 bunches instead of their usual one. In fa..
The time it takes to process phone orders in a small florist/gift shop is normally distributed with a mean of 6 minutes and a standard deviation of 1.24 minutes. What cut off value would separate the 2.5% of orders that take the most time to process?..
Demand graph to assist in explaining the increase in the price of chain saws after Hurricane Andrew. The mayo clinic in Minnesota is known for top-quality medical care.
From 2006 to 2010, per capita real gross domestic product (GDP) in Poland grew an average of 4.71% per year. At that rate, according to the Rule of 70, in roughly how many years will the Polish economy double in size?
Milky Way Dairies purchased a two hundred-acre farm for raising cattle in 2006. An industrial park to the west, Mountain Estates, had in 1980 fenced off a two-acre stretch of land that was properly within the two hundred-acre farm now owned by Milky ..
A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is the inflation-adjusted rate of return per year? the real rate of return per year?
Given that you need to earn 12% return on the $20,000 you have to invest today, what price are you expecting to sell the stock for in 6 years if the stock
In the late 1990s, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. Why was the manufacturer losing money on this pro..
Student heights are normally distributed. The mean height of students is 68.5 inches and the standard deviation is 2.5. Calculate the probability that a randomly selected student is between 69.15 inches and 74.68 inches tall.
Home's demand curve for wheat is P = 40 - 1/2 (QD) and supply is p = 10 + 1/2 (QS). Illustrate graphically the different economic effects if citizens of home are allowed to buy the wheat in foreign markets and the world price is $20. Compute the econ..
Mr Phill owns a farm that produces maize, his cost of production can be represented by the following cost function: 4000Q - 1600Q2 + 200Q3.
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