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Assuming that a representative economy is at the long-run equilibrium, suppose the economyexperiences improved consumer confidence that increases the economy wide growth of investment.
(i) Use the basic aggregate demand and aggregate supply model to illustrate what happensin the short run. How would you expect the reserve bank to respond?
(ii) Use the basic aggregate supply and demand model to illustrate what you would expect tohappen in the long run following this demand shock and consequent policy response.
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
What fraction of the total variation in the quantity demanded of good Y remains unexplained? What can the student do to increase the explanatory power of his demand equation? What other variables might he add to his demand equation?
What's the difference between C language and C ++?
The Federal Reserve’s strategy will require changing the money supply. How does the Federal Reserve do this, and how (and why) does this affect interest rates?
Price discrimination is the practice of charging different customers or groups of customers different prices for the same product. Why does price discrimination occur?
Give a clear answer to this question; Define and give an example of application of concept of income elasticity of demand: of cross price elasticity of demand.
How has Donald Trump's 2016 presidential campaign been so successful? Despite all the negative media attention he has gotten for his controversial remarks, he was still able to clinch the Republican nomination in a landslide with the most votes in..
Best Buy and Circuit City are competitors in the customer electronics market. Both have relatively large margins on plasma TV's. Essentially,
Discuss how each of these options will affect wages and labour productivity, potential GDP and real GDP. Will they lead to growth in real GDP and rises in real GDP per capita? use the potential GDP and labour market diagrams in your answer.
Using the aggregate demand-aggregate supply diagram, graphically illustrate and explain the impact of an appreciation of the U.S. dollar on the price level andreal income in the short run.
A monopolistically competitive firm produces a level of output at which price equals $80, marginal revenue equals $40, average total cost equals $100,marginal cost equals $40, and average fixed cost equals $10. To maximize profit,the firm should prod..
Explain why would economists be very concerned if the annual interest payments on the debt sharply increased as a percentage of GDP.
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