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Question: 1. Will a surplus or a shortage caused by a price control become smaller or larger over time?
2. Does a nonbinding price floor cause a shortage or a surplus? Provide an example to support your answer.
In the coordination failure model, suppose that consumers preferences shift so that they want to consume less leisure and more consumption goods. Determine the effect on aggregate variables in the good equilibrium and the bad equilibrium.
Say that investment increases by 20 for each interest rate drop of one percent. Say also that the expenditures multiplier is 3. If the money multiplier is 4, and each 5 unit change in the money supply changes the interest rate by 1 percent, what open..
Prepare a 1-2 page paper that discusses the impact of India's economy on the United States and other current world economic powers.
Assume that income and business taxes are zero and that the repayment of the principal of the loan does not start before three years. What would be the business (accounting) and economic profit if Norita decided to purchase the bakery shop? Shoul..
Play the Social Security Game (Links to an external site.) to solve the Social Security problem. Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.
The market demand function for corn is Qd = 15 − 2P and the market supply function is Qs = 5P − 6, both measured in billions of bushels per year.Describe how the government can raise the price to $4 per bushel with a vol- untary production reduction ..
problem 1. according to marx capitalism was doomed. describe why. why does capitalism still exist?problem 2. how and
In Northlandia, there are no labor contracts; that is, wagerates can be renegotiated at any time. But in Southlandia, wagerates are set at the beginning of each odd year and last for twoyears. Why would equal-sized falls in aggregate output
What does Cochrane think about tax expenditures? Why does our political system mix goals? Why is "simple" important for the tax code? What is the straightforward problem and solution to our debt and deficits?
Define inflation and describe the two sources of inflation. Compute the inflation rate for each year 1993-2012 determine which were years of inflation
Assume the United States increases the tariff on automobiles imported from Germany (and other foreign countries). What is the effect of this tariff-rate increase.
A firm is a monopoly with demand and cost functions given by P = 200 - 2Q and C(Q) = 2,000 + 3Q2 respectively.Show your computations. a. Show the equations for MR and MC. b. Compute the profit maximizing quantity.
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