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Short-run aggregate supply curve
(The Multiplier and the Time Horizon) Explain how the steepness of the short-run aggregate supply curve affects the government's ability to use fiscal policy to change real GDP.
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
What do you regard as the main weaknesses of the Ricardian or Classical model as an explanation of the trade patterns? Why do you regard them as weaknesses?
You have been hired to work with a resort owner in Northern Minnesota. This resort owner runs a very small operation catering to mostly people who like to fish.
Decide if the values of the goods produced are included in the 2006 GDP and explain your reasoning.
Government needs to eliminate the gap by changing expenditures. What policy would you suggest.
Milton Friedman faiths in a steady growth monetary policy. Illustrate what does that mean and critique this approach.
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
The table below shows the marginal utility a costumer would get by purchasing various quantities-What combination of the three products should be purchased in order to maximize utility?
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M.. He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.
Suppose that there is an "inflation scare," that is, suppose market participants increase their expectations of future inflation.
Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?
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