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If the long-run aggregate supply curve is vertical, then the Phillips curve
A. must be vertical in the short run.
B. must be downward sloping in the long run.
C. must be horizontal in the short run.
D. cannot be downward sloping in the long run.
A company is considering the purchase of a new piece of equipment. The new equipment is expected to reduce manufacturing costs by $20,000 per year for 2 years, and by $15,000 per year for years 3 through 6. What is the present worth of these cost sav..
Few fields of empirical economic research offer virtual unanimity of findings. The authors discuss the role of leakages in determining the impact of sports teams on the local economy. What are they talking about? Be specific so as to convince me that..
When the price of gasoline increased from 3 to 4 dollars per gallon, the demand for gasoline decreased from 100,000 gallons to 90,000 daily. Also, the demand for a $50,000 SUV dropped from 3000 to 2500 cars per month. Estimate the price elasticity of..
Suppose life is discovered on Mars and that it turns out to be quite sophisticated. In fact, perfect competition prevails everywhere on the planet. Which of the following characteristics of Martian firms are we likely to observe.
Suppose minorities form 29 percent of a local population. A local business has 125 employees of which 28 are momorities. Did the business discriminate in its hiring practices? Write the null and alternative hypotheses. What is the value of the test s..
A mine purchased for $3.5 million has a total expected yield of one million ounces of silver. Determine the depletion charge in year 4 when 300,000 ounces are mined and sold for $30 per ounce using (a) cost depletion, and (b) percentage depletion. (c..
How complex pricing models were employed to cause worldwide currencies to weaken or strengthen. Describe the influences that caused the yen to fall. Further, describe the effects on world currencies seen since the writing of this article. How did the..
Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?
Illustrate what money supply should the Bank of Canada set next year if it wants inflation of 10 percent.
You have been hired as an economic consultant for the nation of Ishtar. Ishtar is a developing nation that has recently emerged from a 10-year civil war; as a result, it has experienced appreciable political instability. Ishtar has a serious lack of ..
To what degree is the public debt a burden to future generations? Suppose income taxes and unemployment compensation were cut by an equal amount. How would aggregate demand be affected? As late as 1992, we were running budget deficits of nearly $300 ..
q1. studies have fixed the short-run price elasticity for gasoline at the pump at -.20. suppose that international
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