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Suppose you are the manager of a California winery. How would you expect the following events to affect the market equilibrium price (up or down) you receive for a bottle of wine? Please state the shift (leftward or rightward) of demand or supply. a. The price of comparable French wines increases. b. One hundred existing wineries close in California. c. The price of a glass bottle increases significantly due to new government anti-shatter regulations. d. Researchers discover a new wine- making technology that reduces production costs. e. The average age of consumers decreases, and younger people drink more wine.
Does the GDP deflator do a better job than the CPI in measuring the cost of living
What would be additional effects follow from this initial effect. What is the total effect of the tax cut on aggregate demand.
Why does the SRAS slope upward to the right. What exogenous force determines the overall position of this upward sloping curve on the graph? Show how this decision would affect the SRAS, price level and income level on your graph from the short run i..
How is government debt related to the government deficit? What factors contribute to a large change in the debt-GDP ratio? Why do economists suggest that tax rates be kept roughly constant over time, rather than alternating between high and low level..
When determining the format for a message, a direct approach would work best under which conditions? Which of the following routine messages is most likely to end up as part of an employee's permanent record? A policy change is an example of what typ..
A consumer must pay $10 per visit to an amusement park for the first five visits but only $5 per visit beyond five visits. What does the budget.
A monopoly firm with market power will produce a level of output at which price is greater than marginal cost. Is this statement true? Explain your reasoning, and use a graph (the monopoly model with positive economic profit) to support your answer
If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium.
The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that the company’s many divisions will remain..
Economists often use the sum of a nation's exports and imports divided by its overall economic activity as a measure of the nations degree of openness. Explain why a large value for this measure may not always be a good indicator of openness.
One group of economists, the monetarists, look at the equation of exchange and say that the Fed should simply increase the money supply by an annual rate equal to the long-run growth rate of the economy. Explain the effect that such a policy is likel..
In the short run if the output growth is just 2% for two years and the equation determining the real interest rate changes to: r=4.5-%?Y, what money growth rate should the Fed aim for to hit its inflation target in that period?
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