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a) Explain why there are 2 supply curves in this model and how we transition from one to the other.
b) i) Explain one reason why the AD demand curve might shift to the left.
ii) Describe the process by which the economy gets back to long run equilibrium. Use a graph to support your answer.
iii) In classical economics, why is this referred to as laissez faire economics?
Every society faces? trade-offs because we live in a world of scarcity. Suppose a? student-athlete has the opportunity to earn ?$200 comma 000200,000 next year playing for a minor league baseball? team, ?$100 comma 000100,000 next year playing for a ..
Derive the IS relation. Solve the equilibrium for real output. Solve the equilibrium interest rate. Now suppose that the money supply increases to M/P = 1840. Solve for Y, i, c and T, and describe in words the effects of an expansionary monetary poli..
How would an increase in the minimum wage rate affect the demand for union workers? Should union workers favor or oppose minimum wage laws? Explain.
Jones Co. borrowed money that is to be repaid in 12 years. So that the loan will be paid back at end of the 12th year, the company invests $8,000 at end of each year at 5% compounded annually. Using the tables in the Business Math Handbook that accom..
Explain why a firm in a monopolistic competition setting would engage in advertising and how advertising is similar to rent seeking
How much marginal utility does Joseph arrive from third piece of pizza piece of pizza three total utility seven
When bankers hold excess reserves:
Is it appropriate to use an OLS regression on a panel data if it yields statistically better results than a fixed effects model? OLS results provide statistically significant variables and it is an overall better fit model than fixed effects in which..
An interesting example of strategic behavior comes from a 1997 article about Microsoft’s investment in Apple (New Straits Times, 1997). The article is included in the Required Readings list. What market structure do these firms operate in? Why did Mi..
In the last few years, your company made a concerted effort to improve its minority hiring, so many of the new employees are minorities. How should you decide who to lay off?
The demand for shoes in this industry is characterized by the following inverse demand function:
Develop a compensation package for both managers and sales people. Explain the differences as well as the rationale for the design.
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