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Assume that the government’s economic outlook is shaped by Keynesian economic philosophy and policies. i) Explain and use the AD/AS model to show what happens if there is no government or central bank intervention in the economy from both a short-run and long-run scenario for an inflationary gap. ii) How would this differ if the government’s economic outlook was shaped by Classical economic philosophy? What would be the difference in the reaction and introduction of policy? b.) According to Phillip’s curve theory, what happens in the long run if there is no intervention? How do expectations of inflation change and how is this illustrated using the Phillip’s curve graph?
What is the slope of the supply curve? What is the P-intercept of the supply curve? What is the slope of the demand curve? What is the P-intercept of the demand curve? What is the equilibrium price and quantity of apartments?
New-Project Analysis The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm’s R&D department The equipment's basic price is $100,000, and it would cost another $15,000 to modif..
Suppose that firm A and firm B can form a joint venture to pursue either or both of their R&D programs.
According to the Huffington Post on September 19, 2012,“Demand for the new Apple Inc iphone 5 has been incredible,' AT&T Inc Chief Executive Randall Stephenson said on Wednesday." The increase in demand causes equilibrium price to _ and equilibrium q..
Consider a consumer who spends all of her income on two goods. Prove that it is impossible for both goods to be inferior for this individual. (Suppose the assertion is not true. Write algebraically what this means, and derive a contradiction by using..
Why do you think motorcycle makers did not adopt voluntary emissions standards? Should they have done so? Why or why not?
Trace the development of the labor theory of value from Adam Smith through David Ricardo to Karl Marx. What was the major contribution of each of the three economists to the development of the labor theory of value? What were the principles problems ..
Illustrate what might cause the world interest rate to rise.
Suppose that an economy is in a steady state, so that ongoing union organization is just enough to maintain some constant density of union coverage. A new law is passed that greatly increases the penalties for firms found to have violated laws about ..
Consider the Steve Rogers Corp., a monopolist selling the crime protection on two markets: Hydra and SHIELD. The demand of Hydra is QD = 25 − P/2 and the demand of SHIELD is QD = 10 − P/3. The cost function is TC(Q) = 1.5Q2. Determine the equilibrium..
What effects would each of the following have on aggregate demand or aggregate supply, other things equal? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output, assuming that the price le..
Looking at all commercial banks in the United States, _______ is the largest category of liabilities.
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