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Due to a bust of stock prices, consumer wealth declines, and consumer confidence drops dramatically. Use the AD-AS model to predict what happens to the economy, both graphically and verbally. 1. What happens to aggregate demand? 2. What happens to the level of output and the price level, both in the short-run and the long run? 3. What happens to unemployment in the short run according to Okun's law? 4. What Fed policies can be used to stabilize the economy?
Suppose a monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is..
How does the global economy connect American car buyers and Russian bureaucrats? One person who can answer is Reg Modlin, an emissions specialist at DaimlerChrysler AG's U.S. unit. Mr. Modlin, like many other auto-industry executives worldwide, has s..
Charles decided to open a lawn-mowing firm. To do so, he buys a mowing machine for $7,000 and gasoline ($2.2 in gas is needed to mow each yard) and pays a helper $25 per yard. Prior to opening the company, he earned annually $3,000 as a life guard at..
A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively
what part of the change in Sarah's demand was due to the income effect and what part was due to the substitution effect?
Other factors remaining the same, what would happen to the supply of a particular product if the following changes occur?
Using the diagram, suppose that producers need to have licenses to sell apples, and that only 90 units of apples are licensed (i.e. Q is limited to 90). Calculate: the reduction in the consumers’ surplus. the reduction in the producers’ surplus
Business decisions are often subject to constraints or business rules to solve business problems. Excel’s Solver can be used to develop decisions, such as maximizing profit or reducing costs. You need to assume an initial number of productions for ea..
Big pharmaceutical companies are oligopolies and as such their strategic decisions are influenced by the rival's actions. Describe the pros and cons of the oligopolistic firms in the healthcare sectors
q1. apparent motion is dependent on factors other than isi. describe the various factors that would affect ones ability
Calculate the current velocity of money from the Federal Reserve Database (FRED). Using the Weekly, Seasonally Adjusted, M1 Money Stock, Updated: 2015-07-02 and the Quarterly, Seasonally Adjusted Annual Rate, GDP, Updated: 2015-06-24 - posted for the..
Which industry would be the best example of an oligopoly?
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