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What type of market are the Brazilian arabica coffee growers operating in?
The story states that good weather has resulted in an unexpectedly large crop, which we know will increase supply and reduce the market price for their coffee beans. If all of the farmers know that picking this large crop will guarantee them lower prices, why do they all not simply agree to pick only, say, half of their crop to keep the supply low and the price high? [Hint: Think about what you know from Oligopoly and game theory about each farmer's individual incentives and the difficulty of maintaining a collusion agreement.] What type of market structure would each farmer like to convert to (considering the prices that fancy single-origin, we'll say farm-specific beans in this case, fetch)? Were the farmers able to move "upmarket", would the farmers be making an economic profit when they all reached long-run equilibrium?
Proponents of trade off liberalization argue which freer trade might actually improve the quality of the environment.
Explain how should we expect this phoenomenon affect the US economy at the macro-level, short run and long run.
The increase of the real money supply by 10 percent by the Federal Reserve when the unemployment rate rises by 1 percent is an example of
Relate to the previous task also define for both examples the current market situation - Surplus or Shortage.
Imagine one of worst case scenarios realizes in October 2012, in which Greece does not belong to the eurozone any more, so Greece goes back to use of its own currency, Greek drachma.
During August 2009. 80 people lost their Jobs and didn't look for f new ones, 20 people quit their jobs and retired, 150 unemployed people were hired, 50 people quit the labor force,and 40 people entered the labor force to look for work. Calculate..
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Discuss an adjustment process using AD and AS analysis that will ensure that the economy will return to full employment.
Illustrate what is the economic growth rate equal to. Write down your math calculations. Show to 6 decimal points.
Suppose the commodity market and the money market for an economy are described throughfollowing IS and LM curve.
1.)What major business cycle facts does the RBC theory explain successfully? Does it explain any business cycle facts less well? 2.)How would governmental expansionary policy affect the economy according to both theories (classical and Keynesian)? ..
Discuss the effect of each of the following on the quantity demanded or the demand for new motor homes.
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