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Suppose that there is a? temporary, but significant increase in oil prices in an economy with an? upward-sloping SRAS curve. As a policy response to this? short-lived but sudden increase in oil? prices, a central bank A. can stabilize neither the price level nor the real GDP. B. has no responsibility to stabilize the real GDP. C. cannot stabilize both the price level and the real GDP simultaneously. D. can stabilize both the price level and the real GDP simultaneously.
Consider a game in which there is a prize worth $30. There are three contestants, A, B, and C. Each can buy a ticket worth $15 or $30 or not buy a ticket at all. They make these choices simultaneously and independently. Find all pure-strategy Nash eq..
Suppose that a company has a fixed proportions production function that requires it to use two machines and one worker to produce 1000 units per hour. Explain why the cost per hour of producing 1000 units is 2v+w (where v is the hourly rent for the m..
Does convergence property imply that a measure of dispersion of income per person across the economies will narrow over time? Absolute convergence held for US states from 1880 to 2000. A measure of the dispersion of per capita income across the state..
You just won a contest and have been appointed State of CT Tax Commissioner (you might be asking, why did I enter such a contest? :)). Your primary goal is twofold: raise revenue and make the tax code more efficient. You have to decide which goods to..
The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.
Explain how does marginal analysis affect goods and services, efficiency, equity, and on market economy.
Cost-push inflation is a rise in the general price level due to higher input prices. Cost-push inflation is a rise in the general price level due to the economy operating past or above potential output/income. Demand-pull and cost-push inflationary p..
Dan Demaar and Rob Runten are working on a class assignment on economic growth. Dan collects the GDP growth data for the country Fanez, which is located in the Middle East. The growth rate of the population in Fanez has consistently exceeded the real..
What type of market structure was the product or service in when the differentiation occurred? What is the differentiation? Describe specifically what the differentiation was and tell us what that means for rational business price and production deci..
The GI Bill provided educational opportunities to many young men returning from military service. Using a production possibilities curve, demonstrate how the GI Bill affected economic growth and explain your answer. Why is China still poor in per c..
Draw an example of a monopoly with a linear demand curve and a constant marginal cost curve. Show the profit-maximizing price and output, p* and Q*, and identify the areas of consumer surplus, producer surplus, and deadweight loss. Also show the qua..
suppose that the federal government announced a tax rebate of 500 for all individuals and 1000 for families. What would be the overall impact on AD of these policy changes or would the policy change effects completely cancel each other out?
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