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Question about Aggregate Demand Curve
1. What is the effect of an increase in the quantity of money? What is the difference between real variables and nominal variables? Are these variables affected by the quantity of money? If so, how?
2. What is the difference between the real exchange rate and the nominal exchange rate? If the nominal exchange rate goes from 120 to 160 pesos per dollar, what has happened to the value of a dollar?
3. Why does the aggregate demand curve slope downward? Give at least three reasons and examples when addressing this question. Identify an event that would shift the AD curve and which direction the AD curve will shift.
4. Assume that the federal government increases spending on public works programs, such as highway construction, by $40 billion. How does this change in spending affect the aggregate demand curve? Explain why the shift may be higher or lower than the original $40 billion.
Research the elasticity of beef and eggs in regards to price changes. Explain how do supply, demand, and price controls interact to affect equilibrium price of eggs
Explain how do you calculate the free market wage rate given the labor supply and demand functions.
Illustrate what is the estimated elasticity of demand for new brand cars with respect to the price of gasoline.
Based on absolute advantage and comparative advantage, Elucidate the effect of global economic conditions on the choices available to that country.
Illustrate what is the amount of the producer surplus for Juan Carlos combined.
UBS does not respond to its competition explain how much of its sales is it going to lose.
Compute the optimal price using the arc formula for elasticity. How does the arc formula for elasticity factor in to these equations.
The organization you wish to pursue will convert existing hybrid Toyota Prius automobiles to plug-in hybrid vehicles.
Illustrate what is the impact of shifts of the aggregate demand curve on potential output.
Assume the marketplace for milk. For each of the following events, state whether it affects supply or demand (or both, or neither), which direction supply/demand shifts.
Suppose Sally only purchases food and clothing, and her utility can be expressed as U = F _ C. Currently-What is her optimal bundle?
During a recession the government causally raise government spending
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