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1. Explain how an up sloping aggregate supply curve weakens the realized multiplier effect.
2. Why does a reduction in aggregate demand reduce real output, rather than the price level? Why might a full-strength multiplier apply to a decrease in aggregate demand?
3. Explain: “Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply.” In each case, specify the price-level outcomes.
4. Use shifts of the AD and AS curves to explain (a) the U.S. experience of strong economic growth, full employment, and price stability in the late 1990s and early 2000s and (b) how a strong negative wealth effect from, say, a precipitous drop in the stock market could cause a recession even though productivity is surging.
What are the two effects of every price change Given two goods, "x" and "y", if the price of "x" increases (all else equal), what do each of the effects say will happen to the consumption of "x"? After the change, what can we say about the quantit..
Utilizing the link and the instructions to follow, create a graph of the US GDP relative to Debt from the period 1981 to 2010.
Recently, there have been several consolidations in the economy, the biotech industry being one. With the creation of fewer "Biotech giants worldwide", will this lead to stronger monopoly power, thus potentially contributing to rising healthcare c..
The spirit of equating marginal cost with marginal revenue is not held by perfectly competitive firms oligopolistic firms or else.
In the national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
Different races now or likely to be in workforce of the future depends on the US populations racial demographic changes.
"When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." What is the implied price elasticity of demand by foreigners for a British education is (in absolute..
Illustrate the steps comprised in pricing the television units in order to maximize total revenue.
The demand for haddock has been estimated as Log Q = a+b log P+c log I+ d log Pm Where Q = quantity of haddock sold in New England P = price per pound of haddock
Find out an article which is related to health economics from health journal. Some possible sources include Health Affairs
The average weekly earnings of bus drivers in a city are $950 with a standard deviation of $45. Assume that we select a random sample of 81 bus drivers.
Suppose two equally risky shares, Hi and Lo. Hi shares pay a generous dividend and offer low expected capital gains. Lo shares pay low dividends and offer high expected capital gains.
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