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Suppose in an economy, the government increases spending dramatically. On a graph showing inflation(scale: 0-12%) at 8% and real GDP growth rate at 8%(0-12%), what would be the short-run impact of government spending on the economy?
a) Explain what happens to observed prices in posted offer and double auction markets when there at least two sellers. b) Explain what happens in these two markets as the number of sellers drops to only one seller.c) explain how part b) illustrates t..
The days of picking up a phone and calling to order a product is almost of heard of today. Today most ordering is done on line using new technology known as Electronic Data Interchange (EDI). Big distribution centers are using this technology to fil..
Give two reasons to defend your chosen business cycle - Identify the right fiscal policy that should be followed: contractionary or expansionary and explain why this fiscal policy should be used.
In the Cournot homogeneous oligopoly model, why would each firm not increase its output given both firms are choosing the Nash Equilibrium?
The consumerís after tax wage is now (1 t)w. Explain the e§ect of the new tax on the consumerís consumption and hours of work. In your answer, provide a graphical analysis illustrating the consumerís optimal choice of consumption and leisure befor..
Assume you flipped an honest coin 10 times and heads came up 8 times.
Corn is used in the production of ethanol, which is a substitute for gasoline that can be blended with gasoline to stretch oil supplies in producing refined gasoline. Much of the farmland in the America Midwest can be planted with either wheat or ..
Which of the following is most likely to be an example of economies of scale? A. The per-unit costs on Excel Publishing Company's manuals fall because it adopted a new technology following a large order from the government. B. Alpha-Beta Inc. rais..
Because of the War of the Ring, the price of a sword went up to $150. Calculate new wage and employment level in each sector. (c) Do Hobbits gain or lose if the price of a sword goes up to $150? (To answer the quest..
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:
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