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Suppose there is a permanent fall in private aggregate demand for a country's output (a downward shift of the entire aggregate demand schedule). What is the effect on output? What government policy response would you recommend?
Does Budweiser have a dominant strategy and what is the equilibrium for this advertising strategy game? That is, in which cell will the firms end up?
Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is 1.25. Then we know that a demand is inelastic.
Imagine cell phones are simple and the only thing consumers care about is minutes. Suppose a monopolist wireless company says, "The cell phone and the first 6 minutes are free, and the price of each additional minute is $2." Now suppose your deman..
Determine what are the impacts of innovation and technology on the cost of production and explain how does technology affect market structure and real world competition?
Recognize similarities and differences among common goods, public goods, private goods, and natural monopolies.
The government dislikes smoking, and likes tax revenue. If they wanted to increase the after-tax price to $10 per pack, what size of excise tax must be placed on sellers? How much revenue will it raise? What will be the Deadweight Loss?
Discuss the background of Federal Reserve's Chairman Ben Bernanke in detail including his educational background to his accomplishments to his role in running the Fed. What is his legacy regarding the Federal Reserve?
All other factors held constant, what would be the effect on the demand for money (M1) of each of the following situations. Explain the rationale behind your responses.
Explain why governments sometimes impose a price ceiling in a competitive market and explain three types of long run supply curves using the real industries.
According to Cahner's In Stat Group, number of worldwide wireless phone users will soon reach one billion. In the United States alone, the number of users is expected to increase by 17 million per year for the next five years.
A firm has determined that its variable costs are given by the following relationship:
Is there any difference between the two approaches of the Keynesian theory and the new Keynesian theory in terms of short-run implications? What are the long-run implications on price level and GDP?
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