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The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, What will happen to the amount of crime?
Suppose that the State Bank announces an increase in the money supply. As a result, people start to expect higher prices. What will happen to the short-run aggregate supply curve?
In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
Assume that incomes of the consumers in this market increases. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.
Farmers whose crops were destroyed by the floods were much worseoff, but farmers whose crops were not destroyed benefited from thefloods, why?
The economy will contract or shrink if leakages exceed injections. Are you agree with this statement.
In 2005 the US was close to full employment, but many observers and economists were worried about its trade deficit, which was over $700 billion per year. Suppose macroeconomic policymakers wanted to maintain the level of real GDP
Does the transaction of a buyer also seller directly affect a third party. Is the effect a negative or positive externality.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find out that consumers won't buy it because they don't like the taste. From an economic prespective, the company should
Wall Street responded by increasing SkyWest's market valuation from $143 million to $1.1 billion after the arrangement was made. Explain, in economic terms, how this arrangement with Delta and United could have caused the value of SkyWest to incre..
Assume the economy is slumping into recession and needs a fiscal policy boost.
Elucidate marginal prices do Universities incur by offering more than one of the same classes
These actions have caused violent protests. Should the U.S. follow their example? What would be the consequences of just printing more money to pay the debts of the government?
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