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What effect each of the following events would have on LRAS? Would LRAS shift left, right or no effect? Explain why.
1. Nation experiences a flood of immigrants from the neighboring country.
2. Government increases minimum wage.
3. Mosanto develops synthetic hormone that increases milk production when injected into cows.
4. Hurricane Irene causes severe damage to oil refineries.
Suppose that your employer offered you $4,000 in cash instead of health insurance coverage. Health insurance is excluded from state income taxes and federal income taxes. How different would this calculation look for a worker who earned $500,000 and ..
Why do they believe changes in government spending affect the economy differently than changes in income taxes?
q.the federal government occasionally goes through the process of reauthorizing and modifying the state childrens
q. two soft drinks sit side-by-side in a grocery store a six-pack of coca-cola a brand name sells for 3.00 while a
A monopolist faces a price function given by P = z(36 - 2Q), where P is price, Q is total output and z is the quality of product sold, which can take on only two values. The monopolist can choose between a low quality product z = 1 or a high-quality ..
When ECB went out for bail out then what was expected to happen to the interest rate in Greece? Comment on the expected outcome of this policy on behalf of ECB. Provide diagram and detailed explanation on output and prices. Explain why a group of eco..
A manufacturer plans to open a new plant. The new plant will cost $4,000,000 to build and make ready for production. Company management believes that the plant will produce a net profit of $150,000 in the first year and that profit will increase 5% p..
Through international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus ‘move outside its production possibilities curve.’”
Explain in words why an employer would never want to stop increasing the quantity of labor employed when the marginal product is above the average product of labor.
What effect wills an increase in interest rates have on supply and/or demand of unskilled labour. Would wage rates increase or decrease.
Suppose it is decided that rent control in New York City will be abolished and that market rents will now prevail. Assume that all rental units are identical and so are offered at the same rent. Use a diagram to show the effect on the rental market ..
Explain what happen if all workers and jobs were identical, there would be just one wage rate, assuming perfect information and costless mobility.
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