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Using aggregate demand, short-run aggregate supplies, and long-run aggregate supply curves, explain the process and causes by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Use the diagrams below, resizing them as necessary, to illustrate your analysis. In each case, what are the short-run and long-run effects on the aggregate price level and aggregate output?
a. There is a decrease in households wealth due to a decline in the stock market.
b. The government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases.
Illustrate what is the composite rate of return for the Honda Motor Corp. engineering group in the previous problem if the reinvestment rate.
Elucidate how does TARP illustrate the problem of moral hazard. Illustrate what did the Federal Reserve do during the financial crisis.
What happens to each of these values if the central bank changes the reserve requirement ratio to 3%.
Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually.
Illustrate what is now the effect on gold consumption also mining of an increased utilize of gold as money.
A manufacture procedure using 2 inputs, labor as well as capital.
Wilpen plans to charge a wholesale price of $1.65 per can. As the average value of tennis racket is $110, and average household income of consumer is $24,600.
llustrate what will be the equilibrium price also quantity in the market. Illustrate what is the total market profit also consumer surplus.
Explain how much profit will the perfectly competitive firms earn. Explain how much profit will the monopoly firm earn.
what would the largest cardholder fee that Tuan will pay. If the rental store has a constant marginal cost of $2, which strategy is more profitable?
The social security system levies a tax on workers and pays benefits to the elderly. Suppose that Congress increases both the tax and benefit.
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
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