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An oil cartel effectively increases the price of oil by 100 percent, leading to an adverse supply shock in both Country A and Country B. Both countries were in long-run equilibrium at the same level of output and prices at the time of the shock. The central bank of Country A takes no stabilizing-policy actions. After the short-run impacts of the adverse supply shock become apparent, the central bank of Country B increases the money supply to return the economy to full employment.
a. Describe the short-run impact of the adverse supply shock on prices and output in each country.
b. Compare the long-run impact of the adverse supply shock on prices and output in each country
An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles.
In order to financially stimulate the nation, the Federal government injected $900 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the marginal propensity to co..
Assume you are a marketing manager at a top marketing firm that manufactures dish soap. Which research method and tool would you select to collect data and why?The research method I would use to collect data would depend on whether I was collectin..
Assume the firm raised the price to $4.00 while increasing the advertising expenditures by $100. Would this be beneficial. Explain. Illustrate your answer with the demand schedule.
A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so there is virtually no down time. D..
Describe regarding the best solution for preventing someone from making illegal copies of music files.
Assume an individual purchases 500 units of good and spends 10,000 dollars.
Determine which of the following explain the attitude of most economists towards the United State based automobile sector?
Utilizing productive efficiency as the guide, which country should produce Chevrolets and which should produce Toyotas.
Describe your understanding of what makes a cost or factor relevant to economic reasoning.
Assuming that labor accounts for 80% of country Y's gross domestic product, compute immigrant surplus as a share of national income.
Assume that a society consists of two types of workers. For type A, 3 million workers lose their jobs each year, and each one takes a year to find a new one. For type B, 36 million workers lose their jobs each year (3 million per month)
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