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Thinking back to the business cycle discussion, how would Keynesian economists explain the performance of the economy during the last few years? Show graphically using the AD/AS model, and explain your reasoning.
Next, how would neoclassical economists explain the performance of the economy during the last few years? Show graphically using the AD/AS model, and explain your reasoning.
Which interpretation makes the most sense to you? Why?
Identify two instances in the case study in which employees at Goodrich succumbed to the pressures of conformity. Consider the level at which both groupthink and diffusion of responsibility affected the actions of those involved in the A7D affair,..
What is a government budget deficit. Elucidate how does a federal budget deficit affect the economy.
Obviously there is only so much that can be accomplished in an existing establishment before the owner reached the point of diminishing marginal returns, or where their output reaches a point where additional tables may cause crowding and profits ..
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently.
Although the U.S. does not have the highest saving rate in the world, Americans save more money than citizens of every other country
(a) Derive the average product of labor (AP L) and the average product of capital(APK) (b) Derive the marginal product of labor (MP L) and the marginal product of capital
If 96% of Chinese couples have one child which is female 50% of the time and the remaining 4% of Chinese couples engage in sex-selective abortion until they have a male child.
Given the Demand curve for flyswatters Q = 500-50P, estimate the quantity demanded for the following prices.
Theory Galbraiths of consumer demand has an important implication in terms of underallocation of resources to public goods.
Assume that the following information about the economy is correct. The potential GDP is 3 percent. Real GDP has fallen at a minus two percent rate in the last 12 months.
Two goals of monetary strategy in the United States are price stability and full employment. Explain with the help of the appropriate graphs.
Determine which of the two investment projects of Problem 1 the manager should choose if the discount rate of the firm is 20 percent.
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