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Aggregate Demand and Aggregate Supply (graded)
Surf Bureau of Economic Analysis website www.bea.gov and access the BEA interactively by selecting "National" and then click on interactive tables at the bottom of "Gross Domestic Product (GDP), then "Begin using the data" at the bottom. Which of these four components of AD declined the most during the 2007 and 2009 recession? Do you think an increase in government's spending (G) can boost the Aggregate Demand (AD) in a recession? Analyze the economy which may operate below full-employment GDP in the short run. Explain how can multiplier have a -ve effect? What is the relationship among the multiplier as well as the marginal propensities?
Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers.
You learn that the market price of illegal drugs is falling. Which hypothesis is consistent with this information on drug prices.
As Bavarian Crystal Works is only one for many crystal producers in the world market, it can wholesale as many of the decanters as it wishes for $50 apiece.
In a typical day the store sells some of each type of cola, which suggests that Major League Baseball has adopted FOA because it fears that regular binding arbitration is addictive.
Discuss some of the methodological and measurement problems one might encounter in using time-series data to estimate the parameters of this model.
Consider a mutual fund with $720 million in assets at the start of the year and with 10 million shares outstanding.
Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.
Suppose that only data on in action were published but not on claims for unemployment. What would be a reaction of the USD/EUR in that case.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
Calculate the marginal physical product of labor at each quantity of labor
Bob consumes two commodities: x and y. For what values of py will Bob buy y, and for what values of py will Bob buy only x?
Marginal rate of substitution between leisure as well as labor as well as the marginal product of labor in the Robinson Crusoe model.
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