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A cartel is often an unstable relationship as individual members both seek and seize the opportunity to cheat on the agreement and improve their own position at the expense of others.
Assume that the OPEC oil cartel becomes subject to this tension or conflict such that the cartel gives way to a more competitive oil market resulting in a dramatic decrease in the world oil price.
As a result Australia experiences a significant decline in the rate of inflation
Using the aggregate demand - aggregate supply framework, consider the likely response of the Australian economy in terms of the rate of inflation, the level of real GDP and the unemployment rate in both the short run and the long run.
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Fiscal policy refers to the use of government expenditures or tax policy to influence the aggregate demand for a specific purpose.
Determine what managers can do to prepare for the possible change in short-run production. Pick a real or fictitious business. Create a scenario around this business in which a manager would decide to either stop operations in the short-run or goin..
The minimum wage is used by governments as poverty fighting measure. The use of such means of creating equity among the masses does not always result in desired outcome.
Fred owns four fishing boats on Seneca Lake. He knows from experience the following information about the catch per boat depending on the total numbers of boats he sends to either the north or south end of the lake. Based on the table below, what is ..
Calculate total factor productivity growth (our measure of technological progress) for each country using the growth accounting framework discussed in class.
Can you explain how FISCAL POLICY (making changes to government spending and taxes) would affect Aggregate Demand (AD) How do these two mechanisms of expansionary policy differ
What is the new deficit? Explain carefully why the deficit is not zero. c. Suppose the F-L amendment was not in effect and planned investment falls to I = 55.What is the new value of GDP?
For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality in the d..
Difference among the resource market and the producer market in a circular flow model. In what way are businesses and households both sellers and buyers in this model.
Write a paper which provides an economic profile of the industry you have researched. Utilize all the information you have gathered throughout the course to write your paper.
All firms in a Cournot monopolistically competitive industry have the same cost function C(q) = 25 +10q. Calculate the equilibrium price, firm output, total output and number of firms in the industry.
Second, Describe two problems with banks as international lenders associated with international debt
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