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Suppose that at time t-1 inflation is zero and there were no shocks in the economy. At time t there is a positive supply shock that lasts for only two periods. Using a graph to illustrate your answer, explain the effect of such a shock on the equilibrium of the DAD-DAS model.
Have you been personally involved in the making of a decision for a business concerning what, how, or for whom? If yes, Elucidate your rationale for making such decisions.
The World Bank is currently advising newly industrialized nations on how to increase growth and they have asked for your help.
Illustrate what it says regarding the current state of the economy and the latest reading and trend.
Illustrate the point price, income, also cross elasticities at the present values. Interpret your answers, saying how much a 1% change in each variable impacts demand.
You have the alternative of leasing an asset for $100,000 a year, with payments to be made at the end of each year of use. This lease cannot be cancelled.
Explain what was happening to the economy in terms of the AS/AD model, including what would need to happen to bring us out of the "recessionary gap". In other words, using the AS/AD model as a starting point, explain the economic situation of 2008.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses throughout the past several years. What impact will the repeal have on the exporting of jobs to foreign countries? describe by using isoquant ..
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
The economy will contract or shrink if leakages exceed injections. Are you agree with this statement.
Assume the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off.
Someone prepare the claim that immigration must always be good for the economy because the increased supply of labor will result in a higher GDP.
Compute the amount of profit (ignoring exchange rate fees) that will be earned and the percentage return achieved.
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