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The following events have occured at times in the history of the United States.
*A deep recession hits the world economy.*The world oil price rises sharply.*U.S. business expect future profits to fall.
a. Explain for each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.
b. Explain the separate effects of each event on U.S. real GDP and the price level, starting from a position of long-run equilibrium.
c. Explain the combined effects of these events on U.S. real GDP and the price level, starting from a position of long-run equilibrium.
d. Describe what a classical macroeconomist, a Keynesian, and a monetarist would want to do in response to each of the above events.
Kellogg's, breakfast food people, comprises one of four corporations that control about 92% of its market for breakfast food. Kellogg's would be considered;
Discuss the differences among horizontal, vertical, and conglomerate mergers and what are real-world examples of each type of merger.
If the local environmental quality in Tennessee declines as a result of this trade, then indicate a potential Coase agreement that could avoid the environmental decline and would still make the trade profitable to both parties ? Is such a trade po..
Determine whether Pugelovia is labor-abundant or capital abundant. If car production is capital-intensive and cloth is labor-intensive, what is the Heckscher-Ohlin prediction for the pattern of trade between Pugelovia and The Rest of the world?
Determine what jobs are created through free trade and what jobs are lost when countries restrict free trade? Identify the areas in which U.S. applies protectionist policies.
Discuss and explain how does the Heckscher-Ohlin theory different from Ricardian theory in describing international trade patterns?
What would be the price of steel in the United States if a policy of "self-sufficiency" were established and no imports were allowed? How many tons of steel would be produced?
Discuss the characteristics of international, multidomestic, global, and transnational strategies. Include situations and a specific example in which each strategy would be most appropriate.
The absolute value of tea was $12 a pound and the absolute price of a Honda Civic was $16,000. In 2007, the absolute price of tea increased to $15 per pound
Explain 3-ways in which Federal Reserve can change the money supply. If the Federal Reserve is going to adjust all of these tools during an economy that is increasing too quickly.
Argyle is a huge, vertically integrated company that produces sweaters from a rare type of wool manufactured on its sheep farms. Argyle has adopted a approach of selling wool to firms that compete against it in the market for sweaters.
The other significant indicator in international trade is balance of payments. Summarize your understanding of microeconomic and macroeconomic theory in a discussion of balance of payments
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