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a. Economists usually maintain that policy designed to increase aggregate demand cannot have any long-run real effects. What lies behind this argument?
b. Draw the inflationary impact of expansionary monetary policy curve (draw the curve, noting both SRAS and AD and the Y and P and equilibrium).
c. How does Technology work itself into LRAS?
If there is hurricane, how can this translate itself into the short run aggregate supply curve (draw the curve, noting both SRAS and AD and the Y and P and equilibrium)?
In the economic order quantity (EOQ) model, if the holding cost and the ordering cost both double, the value of Q* will:
The Federal Reserve Discount Window was fundamental to the founding of the Fed in 1913. And while the basic structure has stayed the same, in at least one way its importance has been diminished and in at least one way its importance remains significa..
Market Committee, what you propose to do and what additional information you need to make a better decision. (Remember that the FOMC makes decisions like this given partial information.)
An indifference curve involving two goods identifies the:
According to the law of demand, ceteris paribus. The law of supply implies that.
An investment project has expected or average annual cash flows of$50,000 with a standard deviation of $20,000. The distribution of annual net cash flow is approximately normal. Determine the probability that the annual net cash flows will be less th..
You are considering buying a piece of industrial equipment to automate a part of your production process. This automation will save labor costs by as much as $35,000 per year over 10 years. The equipment will cost $200,000. Should you purchase the eq..
You are an entrepreneur who has decided to go into business and open a steak and chicken restaurant.
Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. Its demand curve for the product is expressed as Q = 5000 – 25P where Q is the number of vac..
Southern European countries (e.g., Spain, Greece, Italy, and Portugal) traditionally export low-tech manufactured items such as textiles, toys, and footwear that are in direct competition with inexpensive goods from China. Why are southern European c..
Imagine that you have invested $1 million in a McDonald’s franchise restaurant. The investment includes expenses for land, buildings, and franchise fees. What are some of the explicit costs and implicit costs of this franchise operation? How do you e..
explain how many car companies will buy a new car assembly machine. Interest payments are made once a year.
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