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It is a short run equilibrium in AD-AS model Assume that real GDP in aspacifica is currently equal to the potential level.( aspacifica is a hypothetical,small economy in the Asia-Pecific region.) Next assume that the country experiences a major slum in business investment. Using no more than 2 AD-AS(also known as ADI-SRIA) diagrams,illustrate the short run macro economic effect of the investment shock. Provide appropriate explanation using full sentence.
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrast the economic fluctuation the United States has experiences from 1990 to current date. Provide ..
The following information describes a hypothetical economy (assume all numbers are in billion if necessary) Determine the value of the MPC of this economy?
However, many critics contended that this "sequester" measure is only temporary and too small given the $4T US government budget to have a significant impact on the economy. Therefore, many economists considered this spending cut as too small to ..
The table shows the maximum annual output combinations of wheat and aluminum that can be produced. Which of the following choices would represent a possible trade based upon specialization and comparative advantage.
What is the productivity growth in this economy? If you had lacked information on growth in the quality of the labor force, and you had therefore assumed that labor quality was not changing (i.e., that h'= 0.0), how would your answer to part (c) ha..
1. if the hhi for the widget industry is 1200 then the market structure isa. impossible to determineb. an oligopoly.c.
Visit the Bureau of Economic Analysis Web site at www.bea.gov In U.S. Economic Accounts under National click on Gross Domestic Product (GDP), then Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables, click "Be..
Illustrate what is the price elasticity of demand. From the price elasticity elucidate the new rates be for 2009 if the demand increases at the same rate.
How does monopolistic competition differ from pure competition in its basic characteristics From pure monopoly? Explain fully what product differentiation may involve. Explain how the entry of firms into its industry affects the demand curve facin..
Discuss why the Reserve Bank of Australia (RBA) has moved the cash rate from 7% to an all-time low of 2.5 % in August 2013, and since than it has maintained this rate.
The owner of Ryan's Car Wash believes that the relationship between the number of cars washed and labor is Q = - 0.6 + 4L - 0.8 L2, where Q is the number of cars washed.How many people should be employed to maximize profit.
Elucidate a monopoly which formed naturally or through vertical or horizontal mergers.
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