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Description of Long-Run Equilibrium
Is there a unique rate of inflation that corresponds to long-run equilibrium? What determines the rate of inflation when the economy is at long-run equilibrium?
Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.
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*?
Compute the companies concentration measure. Explain how would it change if Delta merged with United States.
Compute the income elasticity also elucidate how sale of the novels would change during a period of rising incomes.
You are trying to decide whether to buy some laptop computers for your business in either Canada or in United States. Looking at identical machines on the Dell Canada and the Dell US web sites, you find that they sell for US $2000 (US dollars) in ..
Indicate whether each of the following statements is true or false and explain why.
Suppose Q is the quantity demanded for medical care services. The linear industry demand function takes the form.
Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:
Suppose there are only two firms. It is better to be a quantity leader in a Stackelberg model than a member of a cartel in a one shot market. Use a graph if you want.
Monetary approach, elucidate the process by which a balance of payments deficit is corrected under a flexible exchange rate system?
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