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Determine whether each of the following, other things held constant, would lead to an increase, a decrease, or no change in long-run aggregate supply:
a. An improvement in technologyb. A permanent decrease in the size of the capital stockc. An increase in the actual price leveld. An increase in the expected price levele. A permanent increase in the size of the labor force
Explain the difference between the government purchases multiplier and the net tax multiplier. If the MPC falls, what happens to the tax multiplier?
Explain demand for cassette players is price elastic also they are cyclical normal goods.
Derive the book supply curve where price is expressed as a function of output. Calculate the equilibrium level of output and local bookstore sales revenue.
Consider the following situations. Evaluate how they would affect the level of productivity of labour.
Explain how could the advertising be employed to allow KinderCare to keep price above average cost without encouraging the entry.
The economy of a country called Econoland is described by the following desired aggregate expenditure components (all figures in billions of $). For the purposes of this question, the first set of equations will be referred to as fiscal policy1.
There has been some speculation that tax deductions like as the one allowed for interest on home mortgages will be eliminated or altered.
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Illustrate and discuss the questions that emerged from Walras research strategy.
The raise of Hispanics in the labor force but required data showing what it means. Explain how much of and increase in the labor force.
Describe arbitrage and the law of one price. What role do they play in a market-based system. What do we call the 'one price' of an asset.
Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.
What is the firm's average variable cost as a function of its output level, y? What is the firm's average total cost as a function of its output level, y? What is the firm's profit maximizing level of output, and what is the resulting profit?
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