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A company finds there is a sudden increase in the demand for its product. In the short run, it must operate longer hours and pay higher overtime wage rates. In the long-run, however, the firm can install more machines and operate them for various periods of time. Which do you think will be lower, the short-run or long-run average cost of the increased output? How is your answer affected by the fact that the long-run average cost included the cost of the new machines the firm buys, while the short-run average cost includes no machine purchases? Explain your answer.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
Bush proposed for government expenditures in the case of a recessionary gap? What is the effect of his policies on the federal government budget?
Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP?
As per fiscal policy makers increase the budget deficit, monetary policy makers should increase the money supply
Determine the price elasticity of demand for a resource. Why is it important and what is it used for.
Examine the contribution that automatic stabilizers play in creating a stable economy.
Elucidate whether each of the subsiquent would make fiscal policy more effective or less effective
Elucidate is the fiscal policy expansionary or contractionary.
Assume that the unemployment benefits provided by the private sector (firms) are increased permanently, please answer the following questions.
Explain how has technology impacted the workplace over the last ten years. What impact have these changes had on costs and prices.
Define the following in three senctence minimum definition.
You should suppose that the accident at Chernobyl had no effect on the price of hot dogs or Jane's preference of caviar.
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