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Consider the Economy in long-run equilibrium. A sudden decrease in the price of oil causes the price of gasoline and energy (inputs) to fall.
a. Graph the impact of this shock on the Economy, State whether the economy is in an expansionary or recessionary output gap following this shock.
b. Would we expect to witness an observed unemployment rate higher or lower than the natural unemployment rate following this shock? Briefly discuss why.
c. Explain, fully, how the economy would naturally adjust back to equilibrium
Tom gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 112 hours. His wage is $20. His utility function is U(C,L) = C^3/4*L^1/4. Tom receives 640 each week from her great-grandmother. What is the mar..
Determine the effect of the pollution regulation on the firms profit-maximizing choice of labor input.
Many years ago, the traditional mortgage loan structure specified:
When a country is closed, Qconsumed= Qproduced. When a country opens to trade, this condition is not necessarily true; what condition must hold?
Assume that a monopolist has a demand curve given by P = 1500- 4Q, and T C = 100 + 5Q^2 with MC = 10Q. Calculate the dead weight loss. Calculate the consumer surplus. Calculate the producer surplus.
The mainstream economic view of immigration will predict: decreasing border security to make it easier to come to the United States will decrease unauthorized immigration of family members. that countries whose location is farther from the United Sta..
"What to YOU is Comedy?" What do you find funny? Can you give examples of stories, authors or other arts that you find humor? Also, WHY do you find those things funny?
Graphically, the reservation wage is shown by:
ECOM4000 Economics Assignment, Kaplan Business School, Australia. What type of market do Australian Banks operate in
Explain a program (in method main) to read, process, and display a final report of test scores.
Let's see, what can we talk about? Okay, identify three ways in which you can add security to a Layer 2 switch?
1. How is economics a science? 2. Why do economists make assumptions? 3. Should an economic model describe reality exactly?
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