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State how each of the following affects the ADI curve, and EXPLAIN.
a. An increase in government purchases.
b. A cut in taxes.
c. A decline in planned investment spending by firms.
d. A decision by the bank of Canada to lower the real interest rate at each level of inflation.
Explain why airlines would be a good example of an oligopoly market? Analyze why airlines have to watch each other when they make pricing decisions?
Illustrate what recieves goverment subsides that are in place to protect the population rather than for economic reasons.
What are the five factors that influence comparative advantage? How can the government use different fiscal policies to [a] lower unemployment and [b] reduce inflation?
q.on friday august 5 2011 the rating agency standard and poors downgraded the u.s from aaa to aa. however the other
Suppose further that the MCP is 0,8 if the government wants to increase the real GDP to 2000 billions, by how much should the government increase /decrease its lump-sum taxes? Assume the price level is fixed.
q.assume that each criminal i has the following utility function uibo-fo2 where onumber of crimes committed bper unit
If portfolios are formed by randomly selecting stocks, a 10-stock portfolio will always have a lower beta than a one-stock portfolio.
Calculate Pete's marginal and average cost schedules. What are Pete's profit-maximizing output and price? What is Pete's economic profit? Explain your answer.
Draw and explain a production possibilities frontier for an economy that produces cars and computers. What happens to this frontier if a new technology was created which reduced the production cost of steel by 75%?
Now let's say that the central bank of Columbia decides to do $300 in easy open market operations with Bank A only . After this open market operation is complete, calculate the maximum amount of money that Bank A can create on its own.
Explain why the Aggregate Supply curve becomes increasingly steeply sloped at levels of RGDP near "full employment" and becomes especially steeply sloped beyond "full employment" RGDP. Why might the rate at which the Aggregate Supply curve shifts ver..
Draw the demand curve and show the values of the price and quantity intercepts using the linear equation for Qx=28,000,000-Px divided by 1000.
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