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Describe what the term "full employment" means. Why is the rate of unemployment never zero percent? How is output related to employment? What is the current U.S. unemployment rate? What does it mean that the Phillips curve seems not to prevail recently? Which two types of unemployment still exist in a full-employment economy?
Assume that, in a competitive market, long run supply and demand is more elastic than short run supply and demand. Suppose that the government imposes a transactions tax in this market. In the long run, the tax will collect [less/more] revenue and ca..
The inflation-reduction episode of the early 1980s was an example of an
Draw indifference curves to represent the following types of consumer preferences:
Based on that sample? statistic, what is the best estimate of the proportion for all eligible voters in the? town? Please provide step by step
Discuss and provide application of concepts of supply and demand by identifying two goods and two services you consume at the household or professional level.
Suppose that the money supply is equal to $500 Billion and the demand for money is given by M ^d= 1000-100R, where R is the interest rate in percentages. If the demand for money increases by 5%, what would be the size and direction of an open market ..
Why does the government subsidizes student loans? What would happen as a result of lenders pulling out of this market?
When tolls on the Dulles Airport Greenway were increased from $0.50 to $1.50, traffic decreased from 31,000 to 10,000 trips a day. Assuming all changes in quantity were due to the change in price, what is the price elasticity of demand for the Dulles..
What is an equilibrium price and quantity? Imagine that as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium. How will the new equilibrium alter output? How will it alter the pr..
The difficulties in managing government in a market economy include the following, except:
Suppose that in 2014 there is a sudden, unanticipated burst of inflation. Consider the situations faced by the following individuals. Who gains and who loses? A banker who made an auto loan that the auto buyer will repay at a low fixed rate of intere..
On a single graph draw marginal cost curve, average total cost curve and average variable cost curve for a typical firm. Explain how area that represents profit or loss this firm will earn.
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