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Over stimulating the economy: Suppose the economy today is producing output at its potential level and the inflation rate is equal to its long-run level, with --2%. What happens if policymakers try to stimulate the economy to keep output above potential by 3% every year? How does your answer depend on the slope of the Phillips curve?
Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say that the production of goods and services in Nowhereland has increased between 2002 and 2003? Why or why not?
Elucidate whether each of the following events shifts the short-run aggregate-supply curve, teh aggregate-demand curve, both, or neither.
You are the manager of a hamburger joint with a marginal cost of $6.00 per hamburger. The hamburger joint is a local monopoly near campus. During the day, only students eat at the joint while in the evening only the faculty members eat there. If stud..
Discuss a real world example that could, or has already, caused a shift in either the AD (aggregate demand) or SRAS (short run aggregate supply) curves for the US economy, or some other country.
Role of Business Information Systems
In this Assignment, you will evaluate economic problems and opportunity costs to make informed economic decisions to effectively use scarce resources. You will also examine factors that affect production possibilities to determine the maximum poss..
Is free trade always a good policy? Using Paul krugman's "is free trade passé?" And bhagwati's paper on labor and environmental standards, comment on the status of US free trade policy. Make sure to add your opinion on NAFTA. In what ways can nafta h..
Average visit per week equal 640 when the copayment is $40 and 360 when the copayment is $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage c..
Suppose an economy produces three goods - Economy with three goods (rice, bananas, and strawberries), Draw its PPF assuming constant opportunity costs. Then draw it with increasing opportunity costs
If the price of oats increases, might there be an effect on the supply of wheat as well as on the demand for wheat? Explain.
What changes do you feel are likely to be made to Social Security in the next 15 to 20 years? Why? Think of the people/organizations affected by the change, and who would support the change and who would fight it.
Suppose the economy is on a balanced growth path in the Romer model, and then, in the year 2030, research productivity rises permanently to ¯ z ′ > ¯ z . Why might the parameter ¯ z increase in an economy?
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