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Q. For the questions below, write an explanation of the short-run effect (including the determinant of AD or AS that is causing the shift, the line that shifts [AD or AS], the direction of the shift [left or right], and the impact on output and price level [increase or decrease]) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario.
When Congress authorizes a tariff on imported steel, steel producers around the world boycott American products.
Congress votes to cut spending on the space program.
Tourists flock to visit the major theme parks in Orlando, Florida.
The election of a new Congress causes consumer confidence to soar as expectations of future economic growth are solid.
After that he expects a further increase of 25% in the subsequent four years, so that prices at the end of ten years will have increased to 180% of the present level. Compute the inflation rate, f, for the entire ten-year period.
A fairer distribution of rewards may generate a higher average productive effort on the part of the population in that way enhancing efficiency.
How could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this? Without this information, how would you make a decision?
Describe the demand curve for this product using the following data.
If it decreases the price to $63, what should be the quantity sold? Will revenue increase? Why? Show all work
its marginal costs are below total average costs. If it creates an additional watch where its average total costs rise -fall or stay the same.
q1. the coase theorem suppose a firm pollutes a stream that has a recreational value only when pollution is below a
Dane decides to give up a job earning $100,000 every year as a corporate lawyer also converts the duplex that he owns into a UFO museum had been renting the duplex for $20,000 a year.
The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?
Calculate total economic surplus under monopoly also competition. The difference is the social cost of monopoly
explain a diagram for an industry in a developing country where infant industry protection might be a good idea. What are arguments for and against governments in developing countries giving infant industry protection to new industries.
Government increases taxes by 50 billion and increase transfer payments by 50 billion illustrate what would happen to aggregate demand.
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