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During 2005, the U.S. aggregate real income, Y, increased sharply. We want to figure out what factors may have contributed to that income increase. Suppose that we know that the LM curve did not shift during that year and that the markets for money and for goods and services were both in equilibrium at all times. Which one of the following factors could have caused the increase in income in this situation?
a.A temporary decrease in the domestic nominal interest rate.
b.An increase in the expected return on investment.
c.A temporary increase in the domestic price level.
d.A temporary increase in net taxes.
e.All of the above.
A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed cost. It faces an inverse demand function given by P = 38 – Q and MR = 38 – 2Q. What are the profits of the monopoly in equilibrium? What are the consumer surpluses in equil..
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What do economists believe about the bias in the CPI as a measure of the cost of living?
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Market failure occurs in natural monopolies because
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Which of the following is an example that illustrates the importance of questioning how economic variables are defined?
q.according to the agreement achieved by the administration and the congress were there a breach of the debt ceiling
He has no dependents. He is in the last semester of the Nursing Associate Degree program, and plans to transfer to UWM next semester to pursue a Bachelor Degree
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