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1) Describe and demonstrate graphically how each of the following changes would affect the shape of the AD curve;1) Taxes are reduced2) Nominal money supply increases3) The Government uses an expansionary fiscal policy4) Entrepreneurs become more bullish5) Foreigners develop a strong preference for domestically produced goods6) Autonomous component of Consumption increases.
2) Describe and demonstrate graphically how each of the following changes would affect the shape of the AS curve:1) Taxes on profit are reduced2) Competition is enhanced by introducing some anti-trust laws3) Trade unions are less powerful4) Workers are better trained and more flexible.5) An oil shock hits the system6) Capital become more productive
3) Think a country A with a population of 220 people; 200 are working age and 180 are in the labour force. Thirty people are without a job and 30 have a part time job. By using ILO definitions, compute the following:1) The unemployment rate in country A2) The employment ratio in country A3) The participation rate in country A
Aggregate supply reflects billions of production decisions made through, consumers when they decide which products to buy.
Illustrate What would happen if prices were lowered when demand was inelastic
A no of empirical studies of automobile demand yielded the subsiquent estimates of income and price elasticities
Ajax Cleaning Products is a medium sized company operating in an industry dominated through one very large firm-Tile King. Ajax manufacture a multi-headed tunnel wall scrubber that is similar to a model produced by Tile King.
Estimate the relationship among inflation,unemployment and business cycle on the industry.
Illustrate two policies could you use to reduce the total amount of emissions. Explain how would you decide what was the best level of emission reduction.
Describe what economists mean when they say government purchases are 'exhaustive' expenditures whereas government transfer payments are 'nonexhaustive' expenditures.
Suppose that there are two goods in the economy, and the price of each good is equal to 1. When Alice has income of $10, She consumes 1 unit of good y and 9 units of good r.
In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain?
Explain why the authors cite ethnically segmented markets as a factor that holds back private sector development and building entrepreneurial capacity.
The marginal external expenses associated with air pollution increases with the yearly output of a polluting industry.
Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
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