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The following events have their initial impact on which of the following: aggregate demand, short-run aggregate supply, long-run aggregate supply, or both short-run and long-run aggregate supply? Do the curves shift to the right or left?
a. Government increases infrastructure investment.
b. Government rises the minimum wage.
c. The Federal Reserve decreases the money supply.
d. A bad weather condition lowers agricultural production.
Write a 700- to 1,050-word paper explaining factors that affect supply and demand. Include the following Explain factors that could cause possible changes in supply and demand.
Assume the demand function for good X is Qd = 600 - 2PX + 7PR, illustrate what is the demand function for good x. Which investment produces a $40 daily profit for a game shop earning $2 profit from every game sold.
Tamiflu, produced by Roche, has so far been the most effective medicine to tackle bird flu. Roche was granted a patent on the drug which enables the pharmaceutical firm to charge higher prices and earn higher profits. Monopoly is inefficient as it ch..
In the market economy that relies on the law of supply and demand, determine which of the following does not fit with the other:
Ruth decides to open a Doggie sweater company. It costs her approximately $5 in wool costs, and she pays $3 in labour costs to her knitting ladies. Their group meets at a hall which costs approximately $50 for rent.
The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?
In an application of the Harrod-Domar model, suppose the only final-goods industry in a country is the making of cotton shirts. The factories, machinery and warehouses used in production were purchased previously and are still worth $3 billion. What ..
Which of the following is true regarding a constant cost firm?
Elucidate the likely impact of this event on the market for gasoline and the market for small cars.
Select any four of the six summary statements and explain in detail the significance and possible causes of each item. Be sure to use the economic concepts and polices discussed in your textbook where applicable. Identify possible economic policie..
It trades with a country that produces only cheese, and the currency of that country is crowns. The real exchange rate, e, equals 5 wedges of cheese per bottle of wine. The foreign price level is 20 crowns per wedge of cheese, and the domestic money ..
What is the difference between the Federal Reserve’s “discount rate” and the “federal funds” rate? Why is the discount rate in the US not as important in financial markets as the federal funds rate?
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