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1) Suppose aggregate supply shifts to the left by $2,000 at each price level. What happens to the economy's macro equilibrium position?
2) Suppose aggregate demand shifts to the right by $4,000 at each price level. What happns to the economy's macro equilibrium position?
Consumers of computers value high-quality ones at $1,000 and low-quality ones at $100. The supply of high-quality computers is QH = PH ? 200. The supply of low-quality computers is QL = 2PL ? 100. Only sellers know the true quality of the computers b..
why is growth in average labor productivity viewed as a key factor in determining long-run living standards?
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..
the mainstream theory of the business cycle, is the most common source of reciession: a decrease in aggregate demand, a decrease in aggregate supply, or both.
If you invest $300 in a stock, borrowing $240 of the $300 at 10 percent interest, and the stock price rises by 15 percent, what is the return on your investment?
Consider an economy in which the amount of investment is equal to the amount of savings (i.e., the economy is closed to international flows of capital).
Which of the following methods of stimulating the economy provides the federal government with the greatest control over how the stimulation takes place?
q.marys fence post factory faces a perfectly elastic demand curve for fence posts at a price of 39 per post. let q
Illustrate how much will they have accumulated principal plus interest when they reach 65 years old. What is the moral of this situation.
explain and categorize the cost of inflation. Because of inflation has risen, the L.L Bean Company decides to issue a new catalog quarterly rather than annually.
Calculate the internal rate of return and the net present value to determine the desirability of this investment.
What price-output combination would exist with efficient pricing (MC = P)? Draw a graph with MC, Demand curve and MR curves for the problem above.
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