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Assume the United States economy is macroeconomic equilibrium at full employment, when it experiences a technology boom that improves technology across industries and improves productivity. Evaluate the effect on the AD curve, AS curve, LRAS curve equilibrium price level and equilibrium output. Explain your answer and in addition provide a graph that reflects your explanation.
If taxes are increased by a set number of dollars at each level of income, will the consumption at each level of income decrease by the amount of the tax
If Australia increases its production of ethanol from 40 barrels per day to 54 barrels per day, what is the opportunity cost of an additional barrel of ethanol? If ethanol production increases from 54 barrels to 64 barrels, what happens to the opp..
Suppose we are trying to illustrate the allocation and components of government spending, dividing 100 cents to show the relative weight of each component. Which of the following visuals would be most effective?
Describe the current global economic conditions and their effect on local macroeconomic indicators for your good or service. Describe the local economy's stage in the business cycle.
Think about the relationship between economic prosperity and life expectancy. What implications does this relationship have for the size of the health care
What is the difference between contractionary and expansionary monetary policy? What is the difference between contractionary and expansionary fiscal policy
Two firms compete in a market to sell a homogeneous product with inverse demand function P=600-3Q. Each firm produces at a constant marginal cost of 300 and has no fixed costs. Use this information to compare th output levels and profits in settin..
consider the case of two countries that start with equal levels of gdp. the growth rate of the first country is 3 while
Many people believe that Congress will eventually have to reduce Social Security benefits in order to reduce the budget deficit. Although most of the changes would not take place until later, assume for the purpose of this problem that Social Securit..
Suppose a Treasury bond will mature in 3 years. If the bond pays a coupon of $100 per year and will make a final par value payment of $3,000 at maturity, what is its price if the relevant market interest rate is 7%?
Derive the demand curves for GGC's product in each market. Calculate algebraically for equilibrium P (price) and Q. Then, plot the MC (marginal cost),and MR (marginal revenue) curves graphically and illustrate the equilibrium point.
A monopolist produces and sells 400 units at a price of $40 per unit. The monopolist's marginal cost is equal to $15 and average cost is equal to $23. The monopolist's profit is?
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