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(Fiscal Policy with an Expansionary Gap) Using the aggre- gate demand-aggregate supply model, illustrate an econ- omy with an expansionary gap. If the government is to close the gap by changing government purchases, should it increase or decrease those purchases? In the long run, what happens to the level of real GDP as a result of government intervention? What happens to the price level? Illustrate this on an AD-AS diagram, assuming that the government changes its purchases by exactly the amount necessary to close the gap.
In what way does the Bill of Rights protect individuals' freedom to engage in business activities. it recognizes property righs or else.
Advanced MUa = z=10-x and MUb = z = 21 - 2y, where z in marginal utility per dollar in the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B
Which input bundle represents efficient production of 100 units of output if the rental paid to capital is $25 and the wage paid to labor is $50? Round any decimals to the nearest hundredth. Derive the firm's cost function using the rental and wa..
Find the inverse demand curve
The difference between the average wage of the Experienced workers and the average wage of the Inexperienced workers is $3.10 per hour. Why can we not conclude that experience raises a person's wage based on this fact?
A. The future of airport development. With terrorist-driven declines in air traffic will there be a need for new airports? Are existing airports adequate for current passenger and freight needs?
The concise definition of economics is the study of choice under scarcity. Let's use this concept to analyze a recent decision that you made. Should we only evaluate monetary costs, or are there other non-monetary costs we must consider
What are some things that would affect changes in supply? Discuss at least two factors and how can quantity demanded be changed - what kind of demand (elastic or inelastic) does the product that your firm produces have
A competitive firm has the following short-run cost function: c(y) = y^3-8y^2+30y+5. find the firm's marginal cost function. find the firm's average variable cost function. graph the marginal cost function and the average variable cost function
A firm has the following total cost TC function TC = Q3- 30Q2+ 400Q + 500 , At what level of output the firm's marginal cost MC is $100?
European Union labor costs exceed U.S. and British labor costs primarily because
The City of Oakland is considering alternative ways of providing cable TV service to its residents. Based on an econometric analysis of several recently awarded cable franchises in other cities, economists have determined that the total cost, TC, and..
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