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For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
If the Price level Increases, the aggregate demand curve will ______________.
If government purchases increase, the aggregate demand curve will ______________.
If state income tax increases, the aggregate demand curve will ______________.
If interest rates increase, the aggregate demand curve will ______________.
If there is Faster Incomegrowth in other countries, the U.S aggregate demand curve will __________.
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Using the Lerner index, find the price elasticity of demand for Botox and interpret what this value means to total revenue if the price of Botox were increased one percentage point.
Michael can buy either pizzas or submarine sandwiches. If the prices of pizza and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will
Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output is revenue maximized?
Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.
What is real mortgage interest rate in 2001, 2002, 2003 and 2004? What are the values in 2000 dollars of the Nancy's monthly mortgage payments in the year of 2001, 2002, 2003, and 2004?
Using the following schedule, define the equilibrium price and quantity. Explain the situation at price of $10. What will occur? Discuss the situation at a price of $2. What will occur?
The nation is divided into __12______ Federal Reserve districts, each having a Federal Reserve Bank.
What are the FC, ATC, AFC, AVC and MC at these output levels?
Suppose two nations are considering specializing in either calculators or personal computers. If solely producing calculators, country A can produce 300 and country B can produce 400.
Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four possible $1 price changes.
Discuss how each of the following developments would affect the supply of the money, the demand for money, and the interest rate. For each case, describe what happens in closed economy and in small open economy. Describe your answers with diagrams.
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