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If a supply curve goes through the point P = $10 and Qs = 320, then
a. $10 is the highest price that will induce firms to supply 320 units
b. $10 is the lowest price that will induce firms to supply 320 units
c. at a price higher than $10 there will be a surplus
d. at a price lower than $10 there will be a shortage
Suppose that you decide to leave your current job(with a salary of $60,000) to start your own business in a building (with a market value of $400,000) you already own. You pay $45,
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Q. Assumptions of the AS-AD model? The most significant change we make going from IS-LM model to AS-AD model is to allow P to be endogenous. As P was constant in IS-LM model, w
unplandned change in inventory are coutned as investment spending by firms
dynamic multipier
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations. The price of input A decreases.
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