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Suppose the economy is in long-run equilibrium. In a short span of time, there is a sharp increase in the supply of labor, a major new discovery of oil, and new environmental regulations that raise the cost of electricity production. In the short run
A. the price level will fall and real GDP will rise.
B. the price level and real GDP will both stay the same.
C. the price level will rise and real GDP will fall.
D. All of the above are possible.
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Elucidate how these problems are int..
Illustrate what is the short-run supply curve for each firm in the company. What is the short-run supply curve for the industry as a whole,Qs.
The unemployment rate is, along with GDP and inflation, one of the major economic variables used to assess the health of the economy. However, many critics point to shortcomings in the calculation and overall interpretation of the unemployment rate. ..
A good stock-based mutual fund should earn at least10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating about how well they had done with their mutual fund investment. We turned a $10000 investmen..
Several years ago R. J. Reynolds announced plans to test market a menthol cigarette called Uptown specifically to black consumers. According to the company, about 70 percent of black smokers prefer menthol, more than twice the average rate. What abou..
The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
If Romaine lettuce and Iceberg lettuce are substitute products, an increase in the price of Romaine lettuce will ______ the demand for Iceberg lettuce. A. shift inward B. shift outward C. either increase or decrease (depending on whether lettuce is a..
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million.
If the number of suppliers in the micro calculator industry increases, illustrate what would we expect to happen.
What are we saying when we describe a market as being "in equilibrium"? Changes in market conditions will always trigger one of two disequilibrium conditions. Describe one of them, and tell how the market would react to this disequilibrium.
Illustrate what will happen to the price of bonds also to money holding if the Fed changes the interest rate as a result of a decrease in the money supply.
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