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Show the situation known as stagflation using an aggregate supply and aggregate demand model.
a. Describe how the self correction mechanism will bring the economy back to full employment equilibrium.
b. Why is monetary or fiscal policy to bring the economy back to full employment an issue?
A local video store estimates their average customer's demand per year is Q = 7 - 2P, and knows the marginal cost of each rental is $0.5.
Suppose that a government that is the sole buyer of a crop offers farmers $2.00 per ton of maize (corn), while the market price across the border is $2.50 per ton. What will be the impact on the production of maize? Will it aff..
What is described as the most efficient manner of evaluating fiscal growth?
Collect data on a stock index of your choice over a period of time and find out the nature of volatility in the index. You may use ARCH, GARCH, or any other.
In order to have an accumulation of $100,000 twelve years from today, how much does John Dean need to invest in a mutual fund that pays ¾% per month?
In December, suppose the money supply does increase to $300 billion and there were no changes in resources in the economy. However, the price level did not change from November. What must have velocity been in December to ensure prices did not cha..
Bad weather in the United States causes the production of agricultural products to decrease.
Discuss the concept of GDP, and calculate the GDP from the following information. you should calculate the GDP by the three methods (production, income, and expenditure).
Would it be possible to privatize the money supply in the United States completely? In doing so, what would be the primary obstacle to overcome in implementing such a policy?
If the nominal GDP is $559 billion in the base year, and it rises to 577 in Year 1, and 605 in Year 2, what is the real GDP in each year, given that the price index has risen from 100 to 104.5 in the first year and up to 108.3 in the second year?
Describe when economists with different political views do cost/benefit comparisons, they often reach different conclusions. If their analysis is based on objective costs and valid techniques, why wouldn't they reach similar conclusions, even if t..
Assume that two firms merge. E.g., Firm 1 decides to buy Firm 2 and shut it down. Assume that the merger does not change marginal costs. Calculate Cournot-Nash equilibrium profits for each active firm in the new equilibrium
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