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Suppose the government increases aggregate demand to a level that increases GDP above its long-run equilibrium level. What sequence of events would follow? A)Prices rise; nominal GDP increases; workers demand higher wages; short-run aggregate supply shifts to the left; GDP drops B)Prices fall; workers receive lower wages; short-run aggregate supply shifts to the right; GDP rises C)Prices rise; nominal GDP increases; workers demand higher wages; long-run aggregate supply shifts to the left; GDP falls D)Prices fall; workers receive lower wages; aggregate supply shifts to the right; GDP rises
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB(H)=420-80H and MC(H)=100+240H. Write..
Explain how do the life-cycle hypothesis also the permanent income hypothesis resolve the seemingly inconsistent pieces of evidence regarding consumption behaviour.
step by step all work shown answer and please show all calculations and how you got answer and make it very detailed all work shown please.
Under which of the following circumstances is the principal-agent problem likely to be most serious. The government agency that controls the development and availability of new medical discoveries, including pharmaceutical drugs is
The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers. The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers. The GDP deflator and the CPI are equally good at refle..
The demand function for a firm’s product is Q(P) = 50-P/10. The firm’s cost of production is C(Q) = Q^3-20Q^2+125Q. The firm’s problem is to choose the value of Q≥0 that maximizes its profit. Calculate the firm’s profit-maximizing price and quantity...
Please describe one item in your life for each of the given categories and then explain why: elastic demand. unit elastic demand. inelastic demand.
What is the economic meaning of the vertical gap between the investment curve and the depreciation curve in the Solow diagram?
Write at least one primary and one alternative recommendation from the selected strategies in response to each identified planning need. More than one recommendation may be needed to address all of the planning needs. It is suggested that each recomm..
In the short-short run a firm
Many hotel chains that offer free Wi-Fi service to their customers have experienced increasing demand for Internet bandwidth and increasing costs. Perform a test to see whether the proportion exceeds 0.60. (The critical Z-scores for a left tail test ..
The value of the action The cost of the action The difference between the benefit and the cost of the action
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