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Analyze why the prices of gasoline rose so high over the summer. Was it because OPEC cut back production and the number of people driving was more? Illustrate this using a graph showing a decrease in supply coupled with an increase in demand, resulting in large price increases.
State the rule for optimum input allocation to produce a given level of output at the lowest possible cost -when two inputs are variable.
One of major political developments of last many decades is the increasing size and economic or monetary integration of the European Union. Determine what effect do you think this will have on international trade between nations?
Derive the AS relationship for this economy and what are the natural rate of the unemployment and natural level of output and derive the IS relationship for this economy.
What does the term "quantity demanded" refer to? A. It refers to both the amount of a good that consumers want to buy at a specified price and the amount that suppliers want to sell at that specified price B. It refers to the demand for a good over..
Create another diagram; once again start from an initial macroeconomic equilibrium. Explain both the SR and LR impact of a contractionary AS shock on Y. Use the appropriate diagrams and provide a brief real world example of this type of shock.
Minuteman Manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating cost by $80 per hour of use and the upgraded equipment will be used on average 7 hours per day, what is the expected annual savings.
Based on the newspaper government spending in the US is expected to rise through $30 billion next year. One of the senators of your state is touting how this increase in spending will lead to an rise in employment and aggregate output.
Suppose that a business has developed a very high-quality product and operates more efficiently in producing that product than any other potential competitor.
Bill gets utility (satisfaction) from two goods, x and y, according to the utility function u(x,y) = ln(x) +ln(y). While Bill would like to consume as much as possible he is limited by his income, which is 100 dollars.
Assume that you have drawn a total product curve for labor given a technology. Now let some sort of technological change rise in the productivity of labor.
explain international trade wars can take place and competition among nations is reduced.
Suppose that consumption schedule for a private open economy is such that consumption C=50+0.8Y. Suppose further that planned investment Ig and net exports Xn are independent of the level of real GDP
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