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Describe how the following statements relate to the AD-AS model: a. The Fed has bought more than $2 trillion of Treasury and mortgage bonds to stimulate the economy. b. The above actions by the Fed may cause inflation to rise to levels that most would consider unacceptable. c. The Fed expected a weaker dollar to help increase exports. d. Businesses already have ample access to cheap credit and are reluctant to borrow, hire, and invest for other reasons.
After the firm's patent expires, predict the new market output and price. Assume that competing suppliers have the same economic costs as the original producer. Calculate the resulting change in consumer surplus.
Brian and Allen are thirty years old with identical academic records and job history. Both currently have jobs paying $40,000 each year.
Assume that the gold-mining industry is perfectly competitive. Using a graph of the Representative Firm and a corresponding graph of the Market, illustrate a representative gold mine earning normal economics profits and illustrate equilibrium in t..
Elucidate how the steepness of the short run aggregate supply curve affects the government's ability to use fiscal policy to change real GDP.
Explain why is a risk analysis so important. In your opinion, which among the factors of the risk analysis carry more weight than others?
Why might the Homo sapiens production possibilities curve have shifted outward to the right much more rapidly than those of Neanderthals? Why might failure to specialize explain why Neanderthal groups in difference areas did not trade? (Remember t..
The Bureau of Economic Analysis has been hit by the flu; consequently, it has been slow in getting out data on economic performance. A recession is developing, but nobody knows it yet. This delay is an example of
This customer can buy or sell the commodity depending on its cost.
an investor has two investment opportunities each involving an outlay of 10000. the present value of possible outcomes
assume that joe derives utility based on the following utility function uxy x10.6 x20.610.6if joes income is 5040 a
Economists have estimated the subsiquent transportation elasticities.
Write down the relationship between savings, capital formation, and consumption.
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