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(a). The magnitude of the impact of a given change in the AD (aggregate demand) on P (price level) and the Real GDP depends on the shape of the AS (aggregate supply curve). Explain your answer using a graph (with AD and AS curves on the same graph).
(b). Using two separate graphs, briefly explain the difference between Demand-pull inflation and Cost-push inflation.
How are market structures characterized? How are monopolistic competition able to achieve market power? Monopolistically competitive firms can earn positive economic profits in the short run, but in the long run:
The client would like to know what output level should it select that will keep the competitor from changing its output.
How would you react to a physician who wants the organization to purchase a new piece of technology that the competing hospital
Sally the Greek’s preferences can be described by the utility function U(x,y) = (2x^1/2 + y^1/2)2. What is equation for the indi?erence curve for a utility of 25? By how much does utility increase when Freddy increases consumption of good y by one (s..
This focuses on the relationship between inputs and output. Different production curves are presented. But the intensity of current global competition often requires managers go beyond the traditional production curves.
Suppose that the legal reserve ratio set by the Fed is 10% and that the Fair Bank in Fairdealing, Missouri, initially exhibits checkable deposit accounts of $220 and a reserve account of $70. A customer of Fair Bank deposits $100 into her checking ac..
Write the equation for an isoquant for the production function q= f(K, L) = a*ln(K) + ß*ln(L). Make sure to state it in an explicit form where K represents
The drawback of providing financial incentives to lure FDI inflows is the tremendous cost to the taxpayers of the host countries with the tax implications.
Find marginal cost, average total cost and average variable cost.
A common argument in favor of minimum wage laws is that they are necessary to prevent employers from taking unfair advantage of their employees. What is the flaw of this argument?
1. What is efficiency? Is it the only goal of economic policymakers?
What is an opportunity cost, and why is the term important in economics? (The answer should be a calculation with 2 or 3 complete sentences).
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