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Use an aggregate supply-and-demand diagram to show that multiplier effects are smaller when the aggregate supply curve is steeper. Which case gives rise to more inflation—the steep aggregate supply curve or the flat one? What happens to the multiplier if the aggregate supply curve is vertical?
Consider Bob, he washes his car by hand rather than taking it to the local car wash. When asked why he washes it by hand, Bob explains "you should never pay for something you can do yourself.
Suppose the airline is offered $4,000 per week to haul freight along the route for a local firm. This will mean replacing one of the weekly passenger flights with a freight flight (at the same operating cost).
Suppose the externality/public good aspects of weather forecasts and argue for or against such a "privatization" of weather forecasting.
If the government imposes consumption tax on the good that raised prices by $1, by how much will the consumer's surplus change? Show the relationship between EV, CV, and consumer surplus using compensated and uncompensated demand curves. If you your..
If surgeons really have the ability to increase the demand for operations, which kinds of operations will be most affected? Can you think of a way to determine which operations are unnecessary?
Illustrate what effect if any will this have on competition with Canadian and US firms. Elucidate extent is your answer industry dependent.
Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. How might "politics" complicate fiscal policy How might expectations of a near term policy reversal weaken fiscal policy based on changes in tax rates
Illustrate what is the impact of shifts of the aggregate demand curve on potential output.
Eluciadte what is the Justice Department policy regarding mergers involving firms involved in Horizontal Integration.
In a simple model with no government or foreign sector, the amount of involuntary inventory accumulation at equilibrium is
A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restuarant has received rave reviews and has lines of diners waiting for tables most nights.
Elucidate the increasing returns to scale as a basis for international trade. Be sure that you define the relevant concepts, describe important features of such trade, and contrast these features with those of trade due to other causes.
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