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What is a recessionary gap? What are effects of this gap on the price level, real output, and unemployment? Explain
300 words
Starting from a long run equilibrium, trace the effects for both a competitive firm and the market of a permanent reduction in market demand for: Consider two consumers, John and Maria, each with an quantity of two goods: corn and sug
Next, suppose that the government establishes a price floor of $4.60 for wheat. What will be the main effects of this price floor? Demonstrate your answer graphically.
What is hyperinflation? Explain some factors that were responsible for the Zimbabwean hyperinflation of the late 2000s. In 2009, Zimbabwe ended its hyperinflation by adopting the U.S. dollar as legal tender. What potential problem(s) could this strat..
The most likely reason that oil prices spiked during 2007-2008 was because
Algebraically describe the market equilibrium price/output combination. Find out the price below which the firm will go out of business.
How are the depopulation of Whales worldwide and Congested Highways similar in terms of economics? What are some possible solutions to both?
Suppose that your firm is the only producer of a high-tech sports utility vehicle for North American markets. Assume a constant marginal cost of $25,000 to produce each vehicle and no fixed costs of production.
Why is the use of the permits more efficient than the regulation requiring each firm to reduce pollution by one unit?
Illustrate what is the present worth of the planned expenditures at an interest rate of 10% every year
equity capital is usually less expensive to corporations than dept capital. capital structure is optimal when all sources of capital provide equal funds. debt capital is usually less expensive to corporations than equity capital..most companies use p..
In some states, mining for coal leaves large amounts of rubble, which poses flooding problems; causes land damage also is unsightly.
Which of the following was not a contributing cause of the decline in investment and thus the recessionary expenditure gap occurring during the U.S. recession of 2001.
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