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Draw a correctly labeled aggregate demand and aggregate supply graph illustrating an economy in long-run macroeconomic equilibrium.
a. Adjust your model to show a positive demand shock
b. Based on your model after completing part A, is the economy experiencing: inflation, deflation, or no change in the price level?
c. Based on your model after completing part A, is the economy experiencing economic growth?
d. Based on your model after completing part A, describe what is occurring to the economy's unemployment rate
What is the discounted present value of a prize that gives you two installments of 1000 dollars (each), if these payments are made in five and six years from now, and the interest rate is 0.05?
Define the four basic types of trade barriers. Who gains and who loses from a protective tariff? Explain. Identify the four major tools of monetary policy. Describe how a change in the Fed’s major policy tools leads to [1] expansionary and [2] restri..
Please rank the follow curves as to how they would contribute to deadweight loss if a good that had this elasticity was taxed. Assume the supply curve has elasticity equal to 1. Most deadweight loss. Least deadweight loss
Elucidate the entities affected by industrial regulation in terms of market structure. Elucidate why industrial regulation affects those entities you identified.
The fact that since 1973 blacks have never had a lower unemployment rate than Hispanics, who in turn have never had a lower unemployment rate than whites is evidence of a fairly rigid what?
When demand is elastic, the____________effect dominates the_________effect. When demand is inelastic, the___________effect dominates the_____________effect. When a change in price causes a change in quantity demanded, total revenue always moves in th..
Constant returns to scale are associated with a:
From the perspective of an executive with the firm, prepare a strategic plan to grow the business over the next three years. Your strategic plan must be future-oriented and must: Describe Porsche’s history and its 4Ps (Product, Price, Place, and Prom..
The deadweight loss of taxation increases with the square of the tax rate. Explain this proposition. What are its implications for the design of a value-added tax such as the GST in Canada? Is this a case in which efficiency considerations are diamet..
suppose the quantity of good x demanded by individual 1 is given by x1 10 ?? 2px 001i1 04py and the quantity of x
Suppose that a firm's production function is given by Q = K^0.33L^0.67, where MPK = 0.33K−0.67L^0.67 and MPL = 0.67K^0.33L−0.33. As L increases, what happens to the marginal product of labor? What happens to the marginal product of capital?
if the price is greater than the average variable cost and less than the average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm.
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