Q1 in long-run equilibrium assume the economy in a short

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Q1. In long-run equilibrium assume the economy. In a short duration of time, there is a pessimistic revision of expectations about future business conditions and an unexpected rise in the value of the dollar. In the short run, we would expect

Q2. In late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front. As resulting the creation of oranges was brutally reduced. However, in addition early 2007, President George W. Bush called for the United States to reduce its gasoline consumption by 20% in the next decade. He planned an augment in ethanol which formed from corn moreover the stalks and leaves from corn and other grasses. What is the likely impact of these two events on food prices in the United States?

Reference no: EM13353011

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