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The worst price jump since 1991
The largest annual CPI surge since 1991 has blown fears of growing pressure on consumers. The report from the Department of Labor confirms what every consumer in America has known about this incident for months: inflation has soared and has a negative impact on the economy.
Source: CNN, 16 July 2008 explain and draw a graph to illustrate an increase in the price level of an increase in equilibrium
To determine the equilibrium price level and equilibrium level of real GDP, the aggregate demand and aggregate supply must?
At an output of 9, MC = 20 and AVC = $25. At an output of 10, MC = $32 and AVC = $26. What is the lowest price the firm will accept in the short-run?
What would be different if this scenario was held at a high-end large technology company as opposed to your home? What would be different at a K-12 school?
Assume the reserve requirement is 16%. If the Fed increases reserves by $20 billion, what is the total increase in the money supply?
Explain how to find pareto efficiency? give an example of a problem with multiple utility functions.
What role does local government play in formulating or implementing the policy you are studying? If local government is involved, is that involvement effective?
Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically)
How does government borrowing crowd out investment. What is the relationship between government borrowing and budget deficits
Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.
Everything else being the same, what is the effect of an increase in interest rates on the price level? Discuss the process of adjustment to the new equilibrium
Why does collusion among oligopolists tend to be unstable? How can this be used to explain the recent price war among supermarket chains - explain why the UK supermarkets industry can be seen as an example of oligopoly and how oligopoly arises?
Assuming no government sector, if planned investment spending is 200, what is the equilibrium level of aggregate output? Show this equilibrium level on the graph you have drawn.
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