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Explain the following :
a) Why the long-run aggregate-supply curve is vertical.
b) Three theories for why the short-run aggregate-supply curve is upward-sloping.
For each part of this question, please indicate whether the economic event works initially (that is, in the short run) to shift the (i) aggregate demand curve, (ii) the short-run aggregate supply curve, (iii) the long-run aggregate supply curve, or (iv) both the short-run and long-run aggregate supply curves. a) The Central Bank increases the money supply. b) The country experiences a wave of immigration. c) Workers become more concerned about inflation (that is, the expected price level goes up) and are able to bargain for higher wages from their employers. d) Firms become more confident about future economic prospects. e) The government passes a fiscal stimulus bill that increases government spending
If inflation is a major issue in the economy, what would be the correct fiscal policy response from an economic perspective? Why would members of Congress be unlikely to support such actions?
Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receive. This is typically described as "points"(where one point equals 1% of the loan amount).
a pharmaceutical company has a patent on a lung cancer treatment drug that gives them a monopoly over thenbsp
Regulation imposes new costs on business, including direct, indirect, and induced costs. Which kind of additional cost is most significant to consider in the regulation process?
What amount must be deposited into a savings account that pays 8% interest if the inflation rate is 10% and you want to set aside enough money to purchase a red tape cutting machine ten years after the deposit? The current cost of a red tape cutting ..
The Wall Street Journal carried a story on a type of grocery store that operates with few services and limited use of attractive displays, but with lower prices than its competitors.
which of the following products and services are likely to encounter adverse selection problems golf shirts at
Identify the following components for a lesson you might want to teach intended grade level for instruction
the gpi bookstore orders sweaters with the gpi logo on them and sells them for 40 a piece. during a typical month 80
Current SWOT ANALYSIS for Wal-Mart Provide a current overview of the company's Strengths, Weaknesses, Opportunities, and Threats. Please note that Strengths and Weakness are internal, Threats are external, and Opportunities tend to be a combination o..
Write a summary of the case study. In your summary be sure to include a discussion of Porsche's competitors, competitive rivalry, competitive behavior, and competitive dynamics.
What is the equilibrium Price and Quantity in the market and describe what would happen in this market in terms of the supply and demand curve.
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