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Explain what would happen to the slope or position of the AD curve in the following circumstances.
a. A rise in the price level creates expectations of a further-increasing price level.
b. Government spending increases by 10
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
What does Friedman believe about expansionary monetary policy? Do you think Keynesian economists would agree?.
Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.
Your company is considering an investment project that will generate after-tax cash flows of $1,000 per year for the next three years (and then be scrapped, with no salvage value).
The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
Given table of data comprising real GDP and its components over a number of years, compute compound annual percentage changes in real GDP (economic growth) and compute the shares in real GDP of consumption.
What is the profit-maximizing price and output? What is the total profit? What is the price elasticity of demand at the profit maximizing output?
Suppose that a perfectly equal distribution of income existed in Disneyland. Which of the reccent residents would have the same income he or she has in present distribution?
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?
Write a brief explanation of each of the following terms. import tariff, effective rate of protection
What takes place to the equilibrium price and quantity of ice cream in response to each of the following? Describe your answers.
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