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For each of the following scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand.
(Hint: 2 are increases, 2 are decreases)
1. The United States government decides to increase the federal tax rate by 4% for all earners.
2. The Federal Reserve, the agency charged with regulating banking and monetary policy in the United States, decides to increase the amount of money available in the economy.
3. The newest release of the Consumer Confidence Index shows a steady increase in consumer confidence about the economy.
4. A manufacturing boom during the late 1990s has created an oversupply of tractors, a necessary implement in agricultural production.
If you receive a request for proposal (RFP) on a project for four units, illustrate what is your break-even price.
Its demand curve can be written as P = 160 - Q and its short run total cost curve is equal to TC = 1000 + Q^2. What is the rate of output that maximizes ZZZ, Inc.'s short run profits?
When we apply 50 tons of fertilizer, the total yield is 1500 bushels. Elucidate the marginal value product per ton of fertilizer.
Extend this comparison by choosing a different point on this period's PPF and discuss whether that combination leads to more or less growth over the next period.
How do foreign exchange markets get information and how important is the information when it is in time? What are the procedures and practices of banks?
Why does government support patent process and why does government not encourages monopoly behaviour.
If extension of provisions is made to final goods but not to intermediate goods, what would this do to effective rate of protection (ERP) for country provided by its tariff schedule.
Identify at least three such factors that, in your view, should be included in the GDP calculations; then elucidate and illustrate how could they will help to improve the GDP as a tool for measuring the well-being of a nation.
Illustrate what strategies would you recommend in the fight against obesity. Elucidate what is GMA doing in the fight against obesity.
You are given the following information about the economy of Nocoin: The banks have submitted of $300 billion, two thirds of which is in deposits with the central bank.
Suppose the owner of the trawler can sell al the fish caught for $75 every 100 pounds also can hire a man crew members as desired by paying them $150 every week.
Explain the concept of comparative advantage and the principle theories of why trade occurs and analyze and discuss the sources of comparative advantage in national economies.
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