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What variables cause the long run aggregate supply curve to shift? for each variable , identify whether an increase in that variable will cause the long run aggregate supply curve to shift to the left or right
The state-appointed receiver for a city said his city’s declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to obtain meaningful concessions out of the city..
where E represents annual health care expenditures per capita and Y stands for income per capita. Using the slope of the health expenditure function, predict the change in per capita health care expenditures that would result from a $1,000 increase i..
Based on heckscher online theorem. As a labor abundant country exports the labor intensive good X and imports the capital intensive good y from a capital abundant country.
A US Treasury Security is paying an interest rate of 1.18 percent for a 1 year zero coupon bond. The country of Benin is also giving a 1 year zero coupon bond. There is a probability of 0.05 that Benin will default and pay you back nothing (r=-1). Ot..
Imagine that you run the central bank in a large open economy with a floating exchange rate. Your goal is to stabilize income, and you adjust the money supply accordingly. Under your policy, what happens to the money supply, the interest rate, the ex..
Illustrate what are the different types of inflation. Elucidate why is it important to know which type of inflation we may be experiencing.
Let R be the expected return on a risky investment and R_f be the return on a risk-free investment. The fundamental idea of modem finance is that an investor needs a financial incentive to take a risk. For each company listed below, use the estimated..
If Jason produces 250 kilograms of food per month, Explain how more liquor must he produce to achieve production efficiency.
Show (and explain) the short- and long-run effects of a decrease in the money supply, on a graph of AS and AD, starting at the natural rate of output. Is money neutral?
Smith Services, Inc., was a corporation solely owned by Tony Smith. Bear, Inc., owned and operated Laker Express, a fueling station in Kentucky. Smith charged fuel to an account at Laker Express and owed approximately $35,000. There was no written ag..
As you shop for your favourite clothing, music, and food items try to describe how supply and demand influences the prices of these goods?
The following events occur in the market for good B, which is a normal good: Identify the impact of the event to the equilibrium price and quantity of each event.
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