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Suppose, initially the Australian economy is at full employment (in other words the economy is at the potential GDP). Using AD-AS model, explain how would each of the following events affect the economy both in the immediate and in the long term.
a) A slowdown in China's economic growth due to the sub-prime crisis in the US.
b) Union wage settlements push the wage rate up.
c) An increase in consumer confidence.
Given the following MV information, what is the optimal allocation of care according to the Paretean criteria, when the marginal cost of care is constant at $100? Person A Person B Quantity of Care Consumed MV Quantity
Suppose that a firm's production function is given by U=K.33 * L.67, where marginal product of capital is QK = .67(K-0.67 * L.67) and MPL is QL = .67(K.33 * L-.33).
Use a graph to illustrate how the following changes would affect the demand curve for inpatient services at a hospital in a large city. A.Average real income in the community increases B.In an attempt to cut costs
In the early1980’s, to combat the recessionary forces, President Ron Reagan used expansionary fiscal policy by lowering (marginal) tax rates to combat the recession. Concurrently, Paul Volcker, Chairman of the Federal Reserve Board of Governors, redu..
a. Graph the demand and supply curves. What is the equilibrium price and quantity in this market?
The first effort at converting “republican ideology” into a real government resulted in the Articles of Confederation. What were the strengths/weaknesses of this government? Why did the Founders create this government? After only a decade America’s l..
If a person with utility from income is U = ln Y (where Y is income) and an initial income of $50,000 faces the risk of losing all of her income except a dollar with a likelihood of one percent, what is the most you could charge such a person for ful..
Define the Quantity of Money theory and identify whether this is a Keynesian or Classical cornerstone. Describe what happens when, according to this theory, the money supply is increased.
Illustrate what is the natural rate of unemployment for this economy. Assume the economy has been in equilibrium for a while also the inflation rate is 15%.
By what amount does the average IPO appreciate the first day; that is, what is the average IPO underpricing?
Why is it so important for a business to know about inflation and deflation? What do these terms mean to a business and a consumer? What would be the effect on each of these during a period of inflation?
What recommendations do you have for improving the design of the perceptual map study (i.e. the products, attributes and segmentation questions)?
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