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Assume the price fluctuations observed resulted exclusively from changes in demand. Would the observed price changes have been greater or less if the gold supply had been elastic rather than inelastic?
In monopolistic competition, firms are said to have zero long-run economic profit. This makes me wonder whether profits of intermediate goods producers in New Keynesian model ever be zero.
Do you think that monetary policy works better through the indirect effect of low interest rates or better through the direct effects of increased money and spending? Can the government cause a recession and then limit the strength and speed of the e..
Compute the revised slope of the AE cure and the multiplier when you know that the imports and the marginal tax rate
Suppose that the economy is initially in a steady state and that some of the nation's capital stock is destroyed because of a natural disaster or a war. Please plot what happens to capital per worker and output per worker over time as a result of the..
Assume that an economy is in the long-run equilibrium with the GDP deflator of 150 and potential output of $40 billion. Draw a typical aggregate demand-aggregate supply model using this information. Explain what will happen in the long run due to sel..
The Berwyn Company is considering the addition of a new product to its product line. The firm has plenty of excess manufacturing capacity to produce the new product, and its total fixed costs would be unaffected if the new product were added to its l..
What are some of the risk factors associated with sexual activity during adolescence and potential consequences? What are some of the community-based programs that provide services to address premarital sex in adolescence? In your opinion, are these ..
When I was in college, I went to Sacramento to run a marathon. I was carless and short on cash, so I jumped at the idea of catching a lift to Sac-town with two grad students who were a married couple. On the drive up, we discussed just sharing a sing..
It is estimated that a certain piece of equipment can save $6,000 per year in labor and material cost. The equipment has an expected life of five years and no salvage value. If the company must earn a 15% annual return on such investments, how much c..
A company invested in a pick and place robot for $675,000. The installation costs incurred were $175,000. The company obtained a loan to finance 60% of the equipment to be paid in six equal principal payments plus interest every year at 8%. Perform a..
Morrie is a carpenter who needs to purchase a new electric drill. He visits Vito’s Tool and Hardware Warehouse and looks at the range of electric drills on display on the shelves. On a table are boxes of electric drills with a sign that says “The Sch..
Illustrate what are the five specific events that can be expected to cause the equilibrium price of ice cream to increase.
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