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1. Explain whether the following will cause a shift of the AD curve or a movement along the AD curve
a) Firms become more optimistic about future sales and increase their spending on machinery and equipment.
b) The Canadian economy experiences 6 percent inflation.
Firm 1 and firm 2 are movie producers. Each has the option of producing a blockbuster romance or a blockbuster suspense film. The payoff matrix displaying the payoffs for each of the four possible strategy combinations.
Labor demand for low skilled workers inthe U.S. is w=40-.15L where L is the number of workers (inmillions) and w is the hourly wage. There are 180 million domesticU.S. low-skilled workers who supply labor inelastically.
describe market trends that Proctor and Gamble will face. Elucidate your conclusions. address how each of the following will change or will not change, and why.
Evaluate the statistical significance of the three estimated parameters using a significance level of 5 percent. Be sure to comment on the algebraic signs.
In a few weeks Professor Smith will be taking his daughter Attilla to the State Fair. Calculate the Marginal Rate of Substitution (MRS).
Your "talking points" should be 3 to 5 paragraphs long. Your audience is a group of managers (technical and non-technical) who are participating in a conference on reducing risks associated with insider threats.
However, this simple distinction does not adequately describe how macroeconomics differs from microeconomics. For this assignment you need to identify and describe three differences between macroeconomics and microeconomics.
Given the following balance sheet for a bank when the reserve requirement is 20%: How much can it lend out? Why? What will happen to the money supply? How will this occur? Why? What might limit this
Discuss the simple mechanism from an increase cash rate in the official sort term money market to other interest rates and finally to changes in aggregate demand. illustrate using the market model and the AD-AS model.
What change in government spending would restore full employment? If the simple multiplier is 2, how large is the implied MPC?
Consider the following data, which applies to Avataria and Twilightia in the years 1990 and 2010. In both countries the production function in per worker terms is: y = A(k)^1/2(h)^1/2. Country; Year; Output per worker, y; Physical capital per..
Find the effect of free movement of labor from Home to Foreign on employment, production, real wages, and the income of landowners in each country.
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