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How can you use the aggregate-demand/aggregate-supply model to answer questions regarding the short-term and long-term performance of the economy.
Assume that the product depicted below generates external costs in consumption of $4 per unit. What is the socially optimal output By how much does the market overproduce this good
suppose more home owners cant afford their mortgage and gave up their houses. In the context of the market quantity supplied and quantity demanded diagram, what will happen to both markets in term of Q's, P's and equilibrium.
In each of the following cases, either a recessionary orinflationary gap exists. Assume that the aggregate supply curveis horizontal so that the change in real GDP arising from a shiftof the aggregate demand curve equals the size of the shift of th..
All of the following would cause the aggregate demand curve to shift EXCEPT a) improving levels of prosperity in other countries. b) a decrease in the price level. c) a deterioration of overall consumer confidence. d) an improvement in overall con..
Free-Market capitalism, government intervention, or a combination of both? Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leaders should do to keep it from happening again. Remember, banks a..
France and Poland each have one worker whose monthly linear Production Possibility Frontier indicates the following production possibilities:
How ca one examine the growth in the various agricultural sub sectors of the Nigerian economy between 1981-20013 and what are the factors affecting domestic agricultural production in Nigeria?
suppose that the feds inflation target is 2 percent potential outlook growth is 3.5 percent and velocity is a function
Distinguish between a customs union and a common market. Explain why there has been a growth in the underground economy of the United States.
In the following question briefly describe how the exchange rate for the dollar would likely change in the short-run (ceteris paribus) and state whether the dollar appreciates or depreciate.
If the reserve requirement(rr)is 0.2, what is the simple deposit multiplier? if, in addition, the currency deposit ratio(c) is 0.05 and the excess reserve ratio(e) is 0.15, what is the money multiplier?
It is estimated that the annual after-tax profits of the Microwave Corporatior will be $500,000 per year for each of the next 30 years. Given a discount rate of 14 percent, what is the value of this firm?
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