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Suppose that society decided to reduce consumption and increase investment. How would this change affect economic growth? What groups would benefit from this change? What groups might be hurt? Justify your answer.
Suppose the following equations explain a hypothetical economy where both price level and interest rates are fixed. Find the equilibrium level of income in this economy
Explain and show graphically how the self-correcting(self-djusting) mechanism works in a recessionary and in an infationary gap. Does the ecoomy have a self-correcting mechanism. What factors (determinants) cause the AD curve to shift
As a trader of a commercial bank explain how would I invest $1 million and earn risk free return by engaging in covered interest arbitage.
Discuss and explain the features of the Danish economy and why the Danes overwhelmingly support globalization and job outsourcing.
Describe the market behavior that should result if the price of a product is below its equilibrium price; then describe the behavior that should occur if the price is above its equilibrium price.
What do you think large corporations like Microsoft and WalMart should be regulated more or less than they are.
A sharp decrease in housing prices makes people much less wealthy. If the primary effect of this decreased wealth is felt on labor supply, what happens to the level of employment and the real wage rate if the labor supply function is positively relat..
Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in this market. Determine the quantity demanded,the quantity supplied, and the magnitude of the shortage if a pride ceiling..
A. The firm has an employee who threatens to tell all other firms in the industry about how to implement this new technique. Will it be possible to bribe the employee not to do this? Explain why or why not. B. Why should the employee probably choos..
Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 28Q – 5Q^2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 – 10Q and MC(Q) – 8.)
The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run and long-run perspective.
Where does cross-price elasticity information is more important.
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