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How many of the following four business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real wages? Explain your answer briefly in two or three sentences. You can safely assume that the substitution effect is stronger than the income effect.
A physician's office expenses increase 10 percent so she decides to raise the price of office visits by that much. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice reven..
Initial studies of new Keynesian inflation dynamics indicated that the average? price-adjustment intervals in the United States was as long as
Write down the T balance for the following scenarios and calculate the total money supply.
Explain how your own current household budget, tastes and preferences, and future expectations determine how much of each of these products you purchase in a year. Describe the benefits (utility) you get from each product and service. Suppose the pri..
Illustrate what was the growth rate of the GDP deflator between 2007 and 2008. What was real GDP in 2007 measured in 2000 prices.
The Circular Flow Model with Government is another important model for students to understand. Please explain what the model shows us. List and explain the assumptions of the model. i. There are 3 assumptions of the Circular Flow Model with Governmen..
What are some of the inherent problems involved in discussing the notion that there is a single standard for the “American family?”
The own price elasticity of demand for apples is -1.5. If the price of apples falls by 6 percent, what will happen to the quantity of apples demanded
Compare and contrast the possible consequences for an economy of inflation and deflation.
Use your knowledge about price-searching firms and two-part pricing to advise the company below. A company has a bar and is trying to decide on the cover charge (if any) and price for each drink. It has done a modest regression study in which it aske..
In the short run, the average total cost curve slopes upward because of:
Explain due to a growing US economy, the overall market demand for nails will increase by 2%. Based on this information, should you plan to increase or decrease your production of nails.
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