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Assume that the Illinois Turnpike Authority lowered the speed limit on I-90 to 60 mph from the present 75 mph. In addition, assume that the new speed limit will be vigorously enforced by the Illinois Highway Patrol. Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Explain how the aggregate expenditure function shifts in response to changes in each of the following variables:
Throughout this course we have discussed the 'agency problem' - i.e., when the interests of owners and managers are not properly aligned.
Explain International Monetary System
You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:
Question based on Derive and compare demand curve, Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
Explain which of the following transactions would be directly counted in 2007's GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export.
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
An increase in input prices for rice production; and an improvement in rice production technology. Use diagrams to analyze the effects of these changes on equilibrium price and quantity.
Illustrate each of the following events using a demand and supply diagram for bananas.
Describe what effect an expansionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
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