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What assumptions cause the immediate short run aggregate supply curve to be horizontal? Why is the long run aggregate supply curve vertical? Explain the shape of the short run aggregate supply curve. Why is the short run curve relatively flat to the left of the full employment output and relatively steep to the right?
Determine the present worth of 5 annual deposits of $1,200 at the end of years 1 through 5, followed by 4 equal annual withdrawals of $700 at the end of years 4 through 7. Note that both years 4 and 7 will have a depsoit and a withdrawal. Interest..
Economists occasionally speak of “helicopter money” as a short-hand approach to explaining increases in the money supply. Suppose the Governor of the Fed flies over the country in a helicopter dropping 10,000,000 in newly printed $100 bills (a total ..
At the beginning of the twentieth century, there were many small American automobile manufacturers. At the end of the century, there were only three large ones.
Find the project's expected cash flows and NPV. Now suppose the BSI can abandon the project at the end of the first year by selling it for $6 million. Assume the salvage value is risky and should be discounted at the WACC.
For each of the following scenarios, use a well-labelled diagram of the supply and demand for saving and investment to analyze the effects on the real interest rate, equilibrium investment, and equilibrium national savings. U.S. military involvement ..
In using game theory, both parties have dominant strategies that lead to a best case for each individual. However, these decisions result in a worst case for the combination of the two. Discuss ways that each party can achieve a better solution.
What is the purpose of the policy Why is the policy necessary The welfare of consumers, producers, and society (the winners and losers) before and after the policy The distribution of costs and benefits Does government intervention improve the si..
explain the differentiating characteristics of public and private goodslist any five private goodsbread cinemas
The major promotional strategies include which of the following? A. The producer using advertising, personal selling, and sales promotion to convince wholesalers and retailers to stock and sell merchandise
1. Describe both quotas and tariffs. How do they impact domestic prices and deadweight loss How does an import quota differ from an equivalent tariff What is best for a nation as a whole: a tariff, a quota, or free trade
discuss some reasons for which individual consumers or households might be motivated to provide public goods such
suppose that in 1984 the total output in a single-good economy was 10000 buckets of chicken and the price of each
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