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Suppose that the economy is initially at equilibrium, in which total planned real expenditures equals real GDP. Which of the following will occur if there is an increase in autonomous investment? a. Inventories will increase immediately and production of goods and services will decrease until real GDP catches up with total planned real expenditures. b. Inventories will decrease immediately and production of goods and services will increase until real GDP catches up with total planned real expenditures. c. Both inventories and production of goods and services will increase. d. Inventories will not change and production of goods and services will not change either.
To what extent do you think normative economic analysis, as opposed to positive economic analysis, determines our country's economic public rule decisions made by the government?
A firm conducted a research about the demographics of their customers. For the study they collected data about the following variables: gender, marital status, credit rating (low, medium, high), annual income, and age.
Use a production possibilities frontier graph to illustrate the trade-off to an economy between producing consumption goods and producing capital goods.
Suppose that a country's central bank has price stability as the primary objective. Describe how the central bank conducts monetary policy in times of rising energy prices
When the two countries did not specialize, the total production of corn was 36 million bushels per month, and the total production of jeans was 104 million pairs per month
Explain why the payoff matrix in Problem 1 indicates that firms A and B face the prisoners' dilemma Why The optimal strategy for firm A and firm B in problem 1(c) is to adopt its dominant strategy of charging a low price.
Two of the four market structures, pure competition and monopoly, were covered in unit two. The other two, oligopoly and monopolistic competition, are part of unit three. Make sure you don't confuse monopoly with monopolistic competition.
the largo publishing house uses 400 printers and 200 printing press to produce book. a printers wage rate is 20 and
Why do shifts in production function takes place & how does it affect operational efficiency?
Express kinetic energy in terms of the base SI units: the kilogram, meter, and second. Write your answer in terms of the abbreviations ({kg, m, s}), and then identify the resulting derived unit.
Suppose the Reserve Bank of Australia (RBA) observes directly aggregate demand shocks or fully anticipates them. Formulate a monetary policy rule that would insulate the economy from aggregate demand shocks.
How much will firm 1 earn if it convinces the mayor to decrease the medallion fee by $40,000 (F = – $40) so that the medallion fee is entirely eliminated?
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