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An increase in government spending
(a) leads to an increase in aggregate supply. (b) leads to a decrease in aggregate supply. (c) leads to an increase in aggregate demand. (d) leads to a decrease in aggregate demand.
The minimum wage is typically set above the market-clearing wage in the market for labor. Using a graph with an upward-sloping supply of labor, a downward-sloping demand for labor, with the quantity of labor measured on the horizontal axis and the wa..
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
Suppose that investment decline by 40 units to a level of 60. What will be the new level of equilibrium income.
What is the externality associated with an individual driving on a congested highway? How do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..
What was the issue in Edgewood v. Kirby? What was the judge’s decision? Why were 1 million out of the state’s 3 million school children receiving inadequate instruction? What does democracy require regarding education in Texas?
Why might M1 and M2 grow at very different rates during a given year? If excessively rapid growth in the money supply is associated with all inflationary episodes, why do central banks ever allow the money supply to increase so rapidly?
Spartan Town Bank is the only bank in town when it comes to borrowing or depositing. You may also assume it’s the only bank in the economy. Initially, it holds $4000 worth of checking (or demand) deposits, $1000 of reserves, and $3000 of loans. Const..
Select a United States of America government investment project and a private investment project in the United States of America. Write about why you understand are the primary differences in the cash flows between both projects.
In 1998, Coca-Cola held a contest inviting high-school students to devise promotional ideas for the company. A prize of $500 would go to the school with the best PR strategy. What would happen if Mike sued for violation of his First Amendment rights?
The great 18th century economist Adam Smith wrote, "Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought abo..
Are innovative product and service offerings ethically neutral? Consider Napster and the intellectual property issues associated with swapping music over the Internet as an example to begin the discussion.
Illustrate what are factors that influence supply of loanable funds and the factors that influence demand for loanble funds.
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