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Suppose the simple spending multiplier equals 10. Estimate the size and direction of any shifts in the aggregate expenditure line, the level of real GDP demanded, and the aggregate demand curve for each of the following changes in autonomous spending:a. Autonomous spending rises by $8 billion.b. Autonomous spending falls by $5 billion.c. Autonomous spending rises by $20 billion.
Elucidate the bumper harvest increase or decrease the total revenue of American wheat farmers. How could you have predicted this from your answer to part a.
Elucidate each of the folling statements using supply and demand diagrams. When a cold snap hits Florida, the price of orange juice rises in super marlets through out the country.
Changes in government spending and interest rates
Gus cab driver rents a cab and pays for gas. In each of following circumstances, describe the short-run effects & long-run effects on the price and quantity of rides Gus offers.
Associate a current event article which relates to government regulations or antitrust activities.
Elucidate how banks and individuals can use "covered interest arbitrage" to protect themselves when they make international financial investments.
In the 1990s Japan reduced its exports of automobiles to the United States by 28 percent. If you were the manager of a US car dealership, explain how would this affect your pricing strategy.
Describe the benefits and costs associated with each type of externality. What happens to the Supply and/or Demand curve.
Use our discussion of price discrimination to justify this argument. What problems do you envisage in implementing the policy?
Provide the demand curve in part a, what is the equilibrium price and quantity. If consumer income increases to 30,000 what will be the impact on equilibrium price and quantity.
Explain how many baseball jerseys will you sell in Los Angeles and how many in Brooklyn. What will be the price of your jersey in Los Angeles and what will be the price in Brooklyn.
Utilizing fully explained indifference curve analysis, derive a demand curve for a product.
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