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An economy is facing the inflationary gap shown in the accompanying diagram. To eliminate gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real GDP, and aggregate price level change as the monetary policy closes the inflationary gap?
A company produces output with a constant marginal cost MC = 2. Its output is consumed by two types of customers a and b, with demand functions
Your consulting company has been hired to analyze the results and make recommendations.
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
Elucidate that the indirect utility fuction of quasi convex function of prices and income
Lisa is a lawyer and there are two tasks that she hates to do, even though her job requires it. Draw a graph with hours reading on the horizontal axis and hours writing on the vertical.
Assume that Congress is considering imposing the 30% tariff on imported automobiles. Who would be the gainers and who would be the losers from such move?
State are you for or against free trade. Are you for or against NAFTA? What is the economic basis for trade
Construct a graph showing the outputs, and prices before and after the corrective taxes were imposed.
Explain how does this compare to other industrial economies. What is your opinion on this relationship of the budget deficit to GDP.
If the US population is growing at .88% per year, while GDP is growing at 2.5% per year, and if these growth rates remain constant for the next five years, what will be the population and GDP levels in five years? Please show your work.
Illustrate each of the following events using a demand and supply diagram for bananas.
What would happens to Hi-Tech's profits and the price of books in the short run when Hi-Tech's patents prevents other firms from using the new technology.
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