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Understand the impact on the US Aggregate Supply from a higher supply of energy and the lower energy prices that follow an increase in the supply of energy. Since energy is an input into most all production and transportation, changes in energy prices ripple through the economy and impact prices in all sectors of the economy. What is the most likely impact on energy prices and the American Aggregate Supply from fracking? How do these changes impact the American economy?
An alternative to rent-control laws that would not reduce the quantity of housing supplied is:
A permanent scholarship fund is started through a donation of $100000. If five scholarships of $5000 each are awarded each year beginning ten years from now, Calculate the rate of return for the invested money.
Prove the Heckscher-Ohlin theorem. Assume two different sets of factors abundances for two countries and derive the resulting free trade triangle. Use the combination of words and graphs for the answer.
what is the cross-price elasticity of demand between computers and CD-RW's? Are these goods substitutes or complements?
What are the two methods the FDIC has of handling bank failures. Compare and contrast these two. Which tends to be the most costly and why? Explain the trade-off, in bank regulation, between stability and the absence of moral hazard. In what ways did..
Fury’s Furniture Factory actual sales and purchases for April and May are shown here along with forecasted sales and purchases for June through September. The company makes 22% of its sales for cash and 78% on credit. Of the credit sales, 45% are col..
Which of the following groups are likely to have the highest tax elasticity of labor supply: a) college students, b) single parents, c) primary earners in two-parent families, d) secondary earners in two-parent families, or e) retired people with ave..
In your own words, describe the series of events that led to the “Great Recession” over the 2007-2009 period. Hint: In the vocabulary of Chapter 9, an asset price bubble in what sector of the economy started the the chain of events that ultimately le..
Many economists argue as follows: “Because there is no long-run tradeoff between unemployment and inflation, there is no point in trying to shave the peaks and troughs from the business cycle.” This view suggests that we should not care whether the e..
How does monetary and fiscal policy affect aggregate demand?
Which of the following are likely to increase the demand for heroin? Suppose that Jane Margolis is an addicted heroin user. Ceteris paribus, if the murder of some of the heroin dealers in town causes the price of heroin to rise, we would expect that ..
Goods and services that are not sold in markets, such as food produced and consumed at home and some household articles, are generally not included in GDP
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