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Find the conditions under which a single-product firm with constant average costs that knows that the VF mechanism will be implemented in period two will waste in the first period. Assume that waste entails inefficient behavior that raises the actual costs of the firm per unit by an amount equal to w.
aggregate demand involves the purchasing actions taken by consumers businesses governments and the spending by u.s. and
What is the Aggregate Demand (AD) and Aggregate Supply (AS) curve, in your own words and why is the long-run Aggregate Supply (LRAS) curve vertical?
Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day he quits his job, sells $100,000 worth of bonds that had been earning 5 percent per year, and uses the funds to open a book store. At the end of the y..
in 1995 mango production in kenya fell by approximately 85 following a flood. the retail price of mangoes rose by a
Assume that bank deposits (D) are $3,200 billion, the required reserve ratio is 10%, and currency in circulation is $400 billion. What can the Fed do (in terms of open market operations) to lower the money supply by $100 billion? Explain. (Note assum..
suppose you have announced you will meet the competition in response to entry threats by a potential rival who has done
In addition to the failure of the $830 billion "stimulus package" to produce the kind of "GDP bump" promised by proponents of the program, it also failed to deliver on the claim that it would ensure that the US unemployment rate would not reach 8%, a..
Part 1. Identify most sold bread type
What is the likely effect of the change in consumer confidence on the economy? Explain this using the multiplier concept of fiscal policy (Macroeconomics)
The seller considers selling these objects through second-price auctions. In particular, he considers two kinds of sales. First, he may auction off these objects with three different second-price auctions, one for each object. Call this the "single-o..
Explain why you have answered with the policy that you have, and explain why you have chosen that policy over the other two. (a) Which of these policies is most likely to reduce pollution?
if boeings dollar aircraft price increase 20 percent and the yendollar exchange rate decline 15 percent what effective
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