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Based on your understanding of the aggregate supply and aggregate demand model and the IS-LM model.
a. graphically illustrate and explain what effect an decrease in the money supply will have on the economy. In your graphs, clearly illustrate the short-run and medium-run equilibrium.
b. When output is less than the natural level of output, explain what adjustments will occur in the labor market and discuss what effect they will have on output and the price level.
Suppose that you leave a job that pays $40,000/year and use $10,000 of your savings that had been earning $500/year in interest in order to start your own business. In your business, you sell 450 units at $60/unit while paying $12,000 for capital cos..
Write at least one primary and one alternative recommendation from the selected strategies in response to each identified planning need. More than one recommendation may be needed to address all of the planning needs. It is suggested that each recomm..
A farmer is producing where MC = MR. Say that half of the cost of producing wheat is the rental cost of land (a fixed cost) and half is the cost of labor and machines (a variable cost). In the short run, the farmer should shut down because he is maki..
q1. your cousin zenzo owns a painting company with fixed costs of p200 and the following schedule for variable
Please compare how the Solow model views a fall in the population growth rate with the many issues that countries with falling population growth rates face in the real world. Be sure to describe an issue that aging economies face.
q.given yues utility function u xy 10x 7ynbsp1.is mrsxy diminishing constant or increasing as the consumer
A competitive firm has a short-run total cost curve STC (q)= 0.1q^2 +10q +40. Find and plot the SAC and SAVC curves. For this function, the SMC curve is given by SMC (q)= 0.2q +10.Include this curve in your diagram for part b. Write the equation for..
Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000.
Consider an individual, a business, and a nation? Does opportunity cost apply to all three? Why or why not? How? Give an example for each?
According to the production function, with 300 labor hours, illustrate what is this economy's capacity to produce
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB(H)=420-80H and MC(H)=100+240H. Write..
q. budget constraint suppose that there exists two goods in the economy soybeans s and textiles t and their prices are
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