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Important information about economy in a boom with equilibrium national income above full employment GDP
Using the aggregate demand and aggregate supply model, draw an economy in a boom with equilibrium national income above full employment GDP. If the government does not intervene, explain how the self correcting mechanism works.
Explain how do high inflation rates affect the exchange rate of a country in the short and the long run.
The setup activity price driver rate, using the best cost driver for this situation.
Elucidate which of the following theories of expectations holds that individuals usa all information available in forming expectations.
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M.. He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.
U.S. industry responded to the undeserved domestic leisure travel market that existed in the early 1900s with a second wave of low cost carriers (LLCs)
Explain why is private property and the protection of property rights, so crucial to the success of the market system.
Elucidate how education, research and development, and technology affect productivity.
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Elucidate why the price elasticity of demand differ along a demand curve, even if the demand curve is linear.
Elucidate that the indirect utility fuction of quasi convex function of prices and income
Explain how would each economist explain unemployment and what policies would each advocate.
Illustrate what were some of the major contributing factors and how did they combine to cause the recession. How were you affected by it.
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