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Evaluate wheather each of the following statements is true or false, and explain your answer: a. the short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. b. The long-run aggregate supply curve can never shift. c. 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 curve to the left. d. the Keynesian portion of the short-run aggregate supply (SAS) curve would be relevant during a recessionary situation. e. Stagflation occurs when the aggregate demand (AD) curve shifts out on the upward sloping portion of the short-run aggregate supply (SAS) curve.
Explain the terms 'compensating variation' and 'equivalent variation' of a price change with diagrams. Under what circumstances would the two measures coincide?
Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported tires: A political pundit argues that the government should impose a tariff on tires because they are a necessary input into the production of vario..
Compute percentage change of real exchange rate between US and Japan in past year. Has US Dollar become weaker or stronger in real term.
A monopolist is deciding how to allocate output between two geographically separated markets. What are price, output, prots, marginal revenues, and deadweight loss if. the monopolist can price discriminate? if the law prohibits charging deferent pric..
Exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million.
determine the output that would generate a total profit of $60,000 and the total sales revenues at the output level; draw the cost-volume-profit chart.
We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..
q1. jane wants to buy a beautiful doll as a gift for her sisters birthday. she knows that the same product is offered
Elucidate a personal daily struggle that is an example of the law of noncontradiction and the challenges posed to your beliefs and decisions.
Suppose there are 10 individuals who value a good at {$10, $9, $8, $7, $6, $5, $4, $3, $2, $1}. If the MC is $1.50, what is the optimal price? Calculate the number of units that are sold, total revenue and total profits. Calculate the optimal prices ..
What is the point elasticity of demand at equilibrium? -What is the marginal revenue at equilibrium?(use equation connecting MR and P) If marginal cost is constant $8 dollars, should we keep producing and selling? until which point we can keep produc..
A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 ? Q. Suppose fixed costs rise to $200. What will happen in the market?
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