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Explain whether each of the following statements is true or false, justifying your response.
The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase.
The long-run aggregate supply curve can never shift.
Either a decrease in the nominal money supply by the Federal Reserve, all else held constant, or an increase in the price level, all else held constant, will shift the aggregate demand (AD) curve to the left.
The Keynesian portion of the short-run aggregate supply (SAS) curve would be relevant during a recessionary situation.
Stagflation occurs when the aggregate demand (AD) curve shifts out on the upward sloping portion of the short-run aggregate supply (SAS) curve.
Assume the government implements MC pricing regulation. Illustrate the effects of this approach on the diagram, clearly Demonstrate price charged, quantity produced, profits, deadweight loss.
Consider an initial stock of 5000 tons of high grade ore. The demand function for this ore is P = 2400 – 0.2Q (Q is measured in tons/year), and the cost of extraction is constant at c = $200/ton. The discount rate is r = 0.10. Using a discount rate o..
Suppose that there is an increase in the demand for personal computer systems. Explain the likely effects on marginal revenue product, marginal factor cost, and the number of workers hired by the firm.
Illustrate what is the minimum efficient scale for each technology. Illustrate what if it was more optimistic about summer sales.
How could a company go about meeting those needs and thus motivate you to work better and harder.
A major defence supplier expects to generate additional revenue from its recently won government contract. The company expects the revenue will be $110 million in the first year and the revenue increasing by $2.5 million each year for the next 4 year..
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer-run strategies versus current operations. Also, discuss the differences between economies of scale and economies of sco..
You only buy apples and bananas. Your budget is such that you can purchase 3 apples and 4 bananas or 9 apples and 2 bananas. Write the equation for the budget line with bananas on the y-axis. Is that equation unique.
A product earns an annual gross revenues of $90,000, the variable costs is $60. The fixed cost are $30,000 and the product is sell for $90. The quantity of product sold last year was $1000. The annual profit is most nearly:
q1. if real salaries increase but nominal salaries do not what can be said of prices on average?q2. he second year of
Which has a higher Y.T.M. and why? What would be the real return on bond A and B if the actual inflation rate is 3%?
What is happening to the US trade balance in each of the following situations? Explain. a. Lower international trade barriers for imported products in the US b. Prices in the US decreases more than prices abroad c. Economic improvement starts in Cana..
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