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If there is a consumer surplus in a market for gasoline and the government sets a price ceiling below the market equilibrium price, what will happen to the quantity of gasoline supplied in the short-run, the number of gasoline stations in the long-run, and will the consumer surplus increase or decrease?
As per the Solow model, how would each of the following affect consumption per worker in the long run.
What is the difference between a monopolist and a discriminating monopolist, and which one is pareto efficient?
The demand and supply functions for sweatshirts (the basic grey kind) are as follows: Price Quantity Demanded (per period) Quantity Supplied (per period) $10 14,000 21,000 9 14,500 18,000 8 15,000 15,000 7 15,500 12,000 6 16,..
Illustrate what appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy.
Smaller multiplier means that the change in government purchases of goods and services or taxes necessary to close an inflationary or recessionary gap is larger. Explain this apparent inconsistency?
Explain how and why the firms demand curve for labor will compare to that of the firms operating in a competitive product market, and the consequences for the firms employment of labor. No graphs or calculations are needed.
Since the US gov't was running a budget deficit at the time, assume that the war was financed by gov't borrowing. How does the equilibrium interest rate and private investment change in response to gov't expenditure on the war?
Graphically illustrate the impact of an open-market purchase by the Federal Reserve on the equilibrium interest rate using the theory of liquidity preference and the market for real money balances. (Be sure to label:
Economic growth is a major issue in the current presidential election. The Romney campaign argues that tax cuts for investment is the best way to encourage economic growth. The Obama campaign says that government spending on infrastructure and edu..
Big interest rates are commonly expected to strengthen a nation's currency because they can encourage foreign investment in securities in that nation,
1. Chloe consumes chicken wing (x) and beer (y). Let Px+Py=M be Chloe's budget constraint and her utility function is U(x, y)=5xy. a. Find the formula of income-consumption curve. (This is nothing new. You have solved this many times before.)
Kennebunkport Manufacturing is expected to pay a dividend of $4 per share next year. The dividend growth rate is expected to continue to be 3%. Required rate of return is 7%. What should be the current market price per share?
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