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Assignment:
Define the concept of equilibrium in the simple expenditure model we developed in class. Now, explain what signal in spending will tell us that the economy is not in equilibrium? Lastly, assume that we find that actual Y is greater than equilibrium Y, Ye thus actual current Y>Ye. Explain the reaction by firms to this situation and what you expect to happen to the actual level of Y because of this corporate reaction. Show the graph of the initial situation and the resulting change in Y due to the corporate reaction.
What is the likely effect of an exogenous decrease in the price of oil on the Canadian economy? Explain how the Bank of Canada would respond to such shock.
QUESTION 1: For demand function P = 24 - 6Q- QUESTION 2: The income consumption curve
As you increase the price of a good you are selling, your total revenue increases, but your total profit decreases. Supposing that your demand has not changed, what do these two facts imply for the price elasticity of demand and your cost structur..
Why carboxylic acids which have high number of carbons are less soluble than the low ones?
martha stewart living omnimedia and hain celestial group have hired you to develop a marketing plan for the purpose of
The boat will be used for wakeboard instructing and will generate revenue of $100/hour. One instructional trip will use 4 hours on the boat's engine. Draw and simplify a cash flow diagram that will help you determine how many trips it will take to..
What is the logic behind the campaign and what role do incentives play here - Explain why most seniors often earn lower grades in their last semester before graduation.($1,000)
What is the monthly payment for a 30 year loan with a 8% APR if the loan is for $210,000?
1) Is the monetary policy effective when the demand for money is ultra-sensitive to interest rate? (Please draw the relevant graph(s))
In the short run when US firms moved thrit IT and data functions to India India's aggregate supply? When the money wage rate rose India's aggregate supply? When the price level in India increased Indias aggregate supply?
Suppose government spending increases. Would the effect on aggregate demand be larger if the Federal Reserve held the money supply constant in response or if the Fed were committed to maintaining a fixed interest rate? Explain.
How much profit does an individual producer make in a month? Is this a long-run equilibrium? If the answer is yes, simply state that it is a long-run equilibrium. If the answer is no, explain whether or not the equilibrium price will rise or fa..
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