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The economy is initially in long-run equilibrium. The AD curve shifts to the right and the price level rises. Assuming that the economy is self-regulating, the SRAS curve will shift to the left and the price level will rise even further. If the price level now remains constant, what have we witnessed?
In the signaling model, assume high school graduates are paid a stream of income whose present value is $200,000. College graduates are paid a stream of income whose present value is X. College education costs higher-productivity wo..
Ellucidate explain the broad decline in house prices that occurred in those years. Is the market currently in equilibrium.
Show the results of a Fiscal Policy action that will bring this economy to full employment level of Real GDP. Explain the effect on the fiscal budget and show the effect on the Money Market and the Investment Market.
Explain her change in consumption in terms of income and substitution effects (give a precise quantitative answer). Is this a Griffin good (how do you know)?
Explain how might a high school student's experience with inflation differ from an employed urban adult.
Dave is employed by a corporation that currently pays him $65,000 a year. He owns a new car that he bought for cash of $32,500. Dave is thinking about returning to school to get a law degree.
Let B1(hat) and B2(hat) denote the estimated regression coefficients from a sample of size n for y = x1B1 + x2B2 + u. Show that b1 = B1(hat) + (X1TX1)-1X1TX2B2(hat) where b1 is the coefficient estimate from the regression of y on X1.
Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Elucidate the maximum amount that would pay for an asset that generates an income
Compute the AE function and plot it in diagram. What is total autonomous expenditure? What is slope of the AE function?
Explain how many baseball jerseys will you sell in Los Angeles and how many in Brooklyn. What will be the price of your jersey in Los Angeles and what will be the price in Brooklyn.
Determine the Tragedy of the Commons, which gives a contemporary example, and offer a potential solution.
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