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Construct a production possibilities curve for a hypothetical country. Put public capital goods per year on the bertical axis and consumer goods per year on the horizontal axis. Not shown directly in your graph, assume that this country produces just enough private capital per year to replace its depreciated capital. Assume further that this country is without public capital and is operating at point "A" where consumer goods are at a maximum. Based on the above research and using a production possibilities curve show and explain what happens to this country's private capital, production possibilites curve, and standard of living if it increases its output of public capital.
A contry's currency will depreciate if its inflation rate is less than that of its trading partners.
What happens to the equilibrium price and quantity in each market? Which product experiences a larger change in quantity? Which product experiences a larger change in price?
If graphed, would the curve for this equation slope upward or slope downward and are the variables C and Y inversely related or directly related?
Create a graph that shows Price on the Y-axis and Q demanded and Q Demanded and Q supplied on the X-axis.
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Jason Kidwell is able to purchase Toys'n Things, for $2.2 million. Jason estimates that after initiating his changes in the company's operations the firm's cost of goods sold are 55 percent
Suppose the economy is in the midst of a severe recession. Determine which of the following policies would be consistent with active fiscal policy?
Using above demanded schedule, find out the elasticity of demand for each price change. (Example: when price changes from $5 to $10, quantity demanded changes from 1000 to 800 oz., so the elasticity of demand, by using average values, is 1/3 or 0...
Economists have estimated the subsiquent transportation elasticities.
Explain the differences among the long run and short run aggregate supply curves. Consider these differences and explain how an expansionary gap occurs.
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
Utilizing an aggregate supply and aggregate demand diagram, show why this self-correcting process involves only temporary periods of inflation or deflation.
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