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a. Describe a situation where prices have been held out of equilibrium due to government intervention in the market-the obvious ones discussed in the text are rent control and agricultural subsidies. You may use a specific example of one of these, or any other example.
b. Were there any unintended consequences in your example?
Explain how might knowing this affect you as the manager of a large firm.
Construct a production possibilities curve for a hypothetical country. Put public capital goods per year on the bertical axis and consumer goods per year on the horizontal axis.
Derive the equation for the IS curve, derive the equation for the LM curve, explain why each of the following statements is true. Discuss the impact of monetary and fiscal policy in each of these special cases.
Calculate the inflation rates for the years ended June 2011 and June 2012. Explain how the inflation rate changed in 2012 and explain why might these CPI numbers be biased?
What does the firm have a profit maximising plan in the long run. If no, explain why. If yes, is the plan unique.
Determine the difference among National Income, Gross National Product, and Gross Domestic Product? Why do most countries now use GDP as a measure of national output?
Assume that a employee's skills can be summarized by the number of efficiency units she owns and the distribution of efficiency units in the population
Illustrate what has happened to the value of the real exchange rate over time. What is the significance of this change in value.
Could you offer your opinion, no citations, from two different perspectives on the internet trends.
The textbook claims that when people do not have to pay anything to use valuable resources, such as urban roadway space, they will continue using them until their value diminishes to zero.
Suppose if the economy currently has a frictional unemployment rate of 2%, structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, determine the natural rate of unemployment?
Rover plus, a pet product store, is considering pricing a new RoverPlus labeled dog food. The company will buy the premium dog food from a company in Indiana that packs the product with a Rover Plus label.
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