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Conceptual 1. Using the aggregate supply-aggregate demand model, explain how output and prices are determined. Will output vary or stay fixed in the long run? Suppose the aggregate demand curve were to remain fixed: what can we infer about the behavior of prices over time?
Technical 1. Suppose that actual output is $120 billion and potential (full-employment) output is $156 billion. What is an output gap in this hypothetical economy? Based on your estimate of the output gap, would you expect the unemployment level to be higher or lower than usual?
What type of compensation policy would you expect to observe in an industry with rapidly changing technology? Explain.
It is possible to construct situations in which a consumer can find several points that all maximize her utility. Take the case of perfect substitutes. In Figure S.1.5, we have four indifference curves for perfect substitutes.
What are some of the toughest decisions you've had to make in your life? What techniques (as explored in the Week 5 lecture) did you use at the time to make them?
most commercial fish species in nearly every ocean and sea are being rapidly depleted in what marine biologists and
An industry said to be characterized by monopolistic competition is the apparel industry. Suppose you were hired as a consultant by a firm in this industry. How would advise the firm as to the levels of output
What are the profit-maximizing price and output levels? Explain them and calculate algebraically for equilibrium P (price) and Q (output). Then, plot the MC (marginal cost), D (demand), and MR (marginal revenue) curves graphically and illustrate t..
The Bawl Street Journal costs $580, payable now, for a 2-year subscription. The newspaperis published 252 days per year (5 days per week, except holidays).
Give some examples of waiting lines in everyday life. What decisions should managers of such systems consider? Try to consider the production line as well as waiting in the queue.
The question relates to Economics and it is describe about presenting the import and export data for Balance of Payments of India between the years 2003 and 2011.
Define the factor that estimate the slope of the LM curve and whether an increase in theses factor will make the curve flatter or steeper.
Answer the following questions for this monopolistically competitive firm and show your calculations when necessary.
Analyze and expand the issue using the economic concepts and theory learned in this class. Include at least one graph developed in our course.
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