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Question: Currency crises and the demand for dollars: Suppose there is a currency crisis in the rest of the world, leading to an increase in demand for U.S. dollars (a "flight to safety"). Use the AS/AD framework to explain the effects of this shock on the U.S. economy. Be sure to explain carefully how and why the shock enters the AS/AD model.
imagine you are part of a strategic planning group at walmart that is considering developing a new proposed product
Last year the US low-cost-carrier Spirit Airlines entered the Dallas-Chicago market. The average ticket price for all airlines servicing the route fell from $200 to $180. After Spirit's entry, the number of passengers increased from 700 to 800 pe..
Draw the demand curveb) Calc e when P= $200, P= $100, and P= $0c) carefully draw the total expenditure/revenue curved) what price maximizes the revenue received by the seller
pricing strategy varies significantly across different market structures. the pricing guidelines in a monopoly market
What is the cyclically adjusted budget deficit or surplus? Suppose that real GDP is currently at potential GDP, and the federal budget is balanced. If the economy moves into a recession, what will happen to the federal budget?
The perfectly competitive blank compact disc industry is in long-run equilibrium, selling blank discs for $5 apiece. Now the government imposes an excise tax of $2 per disc produced.
Assume that the banking system has $200 billion in reserves. There are no excess reserves in the system. If the reserve requirement is decreased from 10 percent to 8 percent, what will happen to the level of excess reserves in the system
Using these data, calculate M1 and M2 for both periods. Describe how M1 velocity and M2 velocity differ in the two quarters.
the australian government recently announced its proposed carbon price mechanism. the operation of this scheme is
The Quiet Blow Company has a small plant that manufactures noise suppressors for leaf blowers. Its annual fixed costs are $30,000, and its variable costs are $10 per unit. It can sell a suppressor for $25.
The Junk buyers Company travels from home to home, looking for opportunities to buy items that would otherwise be put out with the garbage.
What can they learn from the adopting innovation and how can this be used to maintain a competitive edge?
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