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The AD-AS model shows a snapshot of the economy at a given point in time. Both economic growth and inflation are dynamic phenomena. Suppose economic growth is 4% per year and aggregate demand is growing at the same rate. What does the AD/AS model say the inflation rate should be?
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the “knife’s edge model”?
Suppose that Deja owns a McDonald's franchise. She decides to move her restaurant's checking account to Wells Fargo, which causes the changes shown on the following T-account. If the required reserve ratio is 0.10, or 10 percent, and Wells Fargo ..
suppose that consumption depends on the level of real money balances on the grounds that real money balances are part
What goes into assessments of net benefits of an environmental policy? Why does environmental economics place as much emphasis
Assume initially that the cost of the subsidy equals the value of the jobs (e.g., if 30,000 jobs are saved at an average cost of $50,000 per year.
All firms in a competitive market have the following total cost function: TC = 0.5Q3- 12.5Q2+ 125Q + 3200 The market demand and supply functions are given by Qmd = 16500 - 60P , Qms = -3500 + 40P - What is a typi..
Why do you think consumers respond to the "Buy One Get One Half Off" sales promotion and what principle of economics does this behavior reflect?
Calculate the values of change in consumer surplus
Examine key methods of marketing for retailing that will target all customers without exclusion. Provide justification for your selection.
In addition to this interest cost these facilities have maintenance and staffing "fixed" costs of $1M a year. What would you advise the company to do, and why?
In a practical sense, write your opinions on the effect a rule stating that university students must live in university dormitories would have on the price elasticity of demand for dormitory space.
1. This question refers to income distribution. (1) what is a Lorenz curve? Draw one, labeling the axes (2)Explain why a Lorenz curve can never lie to the left or above the 45 degree line (3)Using a Lorenz curve diagram, explain how to calculate ..
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