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What indicator will make clear in the expenditure model that equilibrium has been violated? Speculate on what actions firms will take in reaction to this indicator not being equal to zero?
New safety regulations increase manufacturers’ costs of producing insulation. What happens in the market for insulation as a result?
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.
According to statistics provided by the Federal Reserve, total reserves of commercial banks currently equal $1.63 trillion. Required reserves are $130 billion, so excess reserves total approximately $1.50 trillion. Would the existing reserves be suff..
In World War II, a German POW camp guard exchanged bread and chocolate with prisoners at the rate of one loaf for one chocolate bar. Inside the POW camp, the price was 15 cigarettes per chocolate bar, and 40 cigarettes per loaf of bread. Is there an ..
A health insurance company knows that there are two types of customers (smokers and non-smokers), each facing different health risks. The probabilities of getting sick and the healthcare costs in the case of illness for the two customer types is give..
Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may use quantities two (Q = 2) through eighteen (Q = 18) by units of one (1) for your graph. What is..
Define value-added product and give an example.
(a) To find the probability that X will be more than 28, you would compute z =. (b) To find the probability that X will be less than 17, you would compute z =.
If European central banks were to charge interest on excess reserves held in Europe while the Fed continued to pay interest on excess reserves held in the United States, why might we expect an increased flow of funds from banks in Europe to their U.S..
Expansionary monetary policy would consist of. Which would shift the short run aggregate supply curve to the? left? Which would NOT shift the long run aggregate supply curve? outwards? In the aggregate supply and demand? model, in long run equilibriu..
How does the population of Pleasanton at the end of the 1990s compare with its population in 1980?
Based on the standard labor demand model, in the long run, what do you expect to be the scale and substitution effects of a decrease in r (the price of capital) on the amount of labor demanded? What is the predicted total effect?
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