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If the government announces a big tax cut, which of the following combinations of events would be most likely to occur?
a) An upward shift of the aggregate expenditure line (Keynesian AD), a rightward shift in the money demand curve, and a rightward shift of the aggregate demand curve (the AS/AD)
b) A downward shift of the aggregate expenditure line, a leftward shift in the money demand curve, and a leftward shift of the aggregate demand curve
c) An upward shift of the aggregate expenditure line, a leftward shift in the money demand curve, and a rightward shift of the aggregate demand curve
d) A downward shift of the aggregate expenditure line, a rightward shift in the money demand curve, and a rightward shift of the aggregate demand curve
Hiring more supervisory personnel can reduce the principal-agent problem and decrease costs. can reduce the principal-agent problem but increase costs. will eliminate the principal-agent problem. is contrary to the profit incentive.
Draw the new budget line and use the indifference curve to identify the change in quantity purchased and illustrate the income and substitution effects.
Describe how price regulation may improve the performance of monopolies. In your answer distinguish between socially optimal pricing and fair return pricing.
The inflation rate would rise naturally as it always has the trick is to keep the supply of product as closely inline with consume needs. This can be done in many ways. If you see prices of a certain product climb you should look at ways to slow t..
What is the key assumption needed to show how one can construct a numerical utility function out of just a preference ordering? Don't just draw a picture; explain what the assumption means and apply it to show how to construct that numerical util..
What three factors determine whether two economics with separate fiscal and monetary authorities should form a currency union Give illustration of each factor using NAFTA economies.
if the product price is 4 per unit and the price of the factor of production is 80 per unit the profit-maximizing
on a graph this is demonstrated by a series of hills and valleys corresponding to the expansion and contraction of
Desscribe some of the trade-offs faced
1. describe the industry and explain the general pattern of change of the particular market model.2. hypothesize the
This line is aimed at the low end of the market and isn't constructed on a wheel base. Writing instruments. This line includes mechanical pens and pencils which are sold to the middle-market segment between the low-end products such as Bic and hi..
A growing number of businesses' including videogame developers, cigarette companies, soft drink producers, liquor marketers, and fast food chains are feeling the heat from government, the press, and society at large for encouraging harmful
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