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If a country, lets say UK since Brexit, faces higher inflation and lower output than potential, which I am guessing is a adverse supply shock. What kind of FISCAL policy is needed to fix this issue? Explanation has to be in terms of AD-AS model please.
Suppose a consumer live two periods, in the first have an income m1 = 30 and in the second an income of m2 = 20. Suppose the interest rate is 10% and can borrow and lend at that interest rate. What is the maximum quantity he can consume in the first ..
Explain a situation using the supply and demand for skilled labor in which the increased number of college graduates leads to depressed wages.
The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $55 and has a variable cost of $29. There are $40,820 in fixed costs involved in the production process. Compute the break-even p..
Is the government as efficient as the private sector in delivering services? Why? Why not? The new health program (Obamacare) has a number of problems. Will the new health care program be affected adversely?
Why a government may not want to encourage competition in a market with a monopoly?
Using appropriate diagrams of wage and price setting and aggregate demand and aggregate supply, explain and discuss the effects of an increase in the price of oil, assuming that this increase in price leads to an increase in the markup set by firms a..
Describe some of the changes in the "what, how, and for whom" to produce for questions that would occur if Boeing manufactured all its components to make its Dreamliner at its own factories in the United States.
A firm uses steel and aluminum to produce auto parts. The current input mix used by the firm is such that the marginal product of aluminum is equal to 800 units, while the marginal product of steel is equal to 500 units. The price of aluminum is $160..
So, do you think it is a good thing or a bad thing for new countries to enter into the marketplace? Are there any steps that the marketplace as a whole
Consider a worker who is paid a ?at rate w to perform a task. The worker gets to choose the amount of e?ort she exerts; the harder she works the more output she produces. In particular, her ?rm earns v for each unit of e?ort e the worker exerts. What..
How do you feel about learning-disabled students taking un-timed tests? If the student cannot compete for admission on the same basis as everyone else, how can he or she compete in the classroom without enormous amounts of assistance? Is it fair to h..
Suppose that there are only two firms (Firm A and Firm B) in the market for decorative lampshades. Letthe inverse demand function and the total cost function be given by P = 50 –Q and TC = 2Q. How many lampshades will Firm A choose to produce? Sol..
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