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Question: Classical economists belief that prices and quantities adjust to the changes in the forces of supply and demand and that the economy produces its potential output in the long run. On the contrary, Keynesian economists believe because of price and wage rigidities the economy's equilibrium output in the long run may be less than its potential output. What is price-wage rigidity? Do you agree with Keynes assessment that wage-price rigidity requires government's involvement in the markets? Why? Why not?
What would be the result of appropriate fiscal policy in that case.
Attorneys for Eastman Kodak argued in front of the U.S. Supreme Court to defend the company against charges levied by several independent firms that provide service for machine sold by Eastman Kodak.
can you make any conclusions about returns to scale? That is, can you deduce that the firm is experiencing increasing, decreasing, or constant returns to scale?
Consider the following responses to the event of a hurricane. For this discussion: you do not need to provide an answer for each of the owners' responses, but do give your economics reasoning to support the conclusion that you've drawn with respe..
Suppose DJIA records the changes in prices of 4 stocks. Suppose initially the prices of these stocks are $40. $20, $60. and $80. What is the DJIA.
What is the socially efficient price in the two years? What is the UC in each year?
1. For each of the following economic conditions, place an X in the table to indicate the appropriate range in the Aggregate Supply Curve
Does the "specific pricing" or "pay for performance" model fit the classic definition of price discrimination? Why or why not? Please check each of the relevant criteria.
Suppose that a country's imports are given IM=20+.1Y, and their consumption is given by C=100+.8Y. If the government increases government spending by 300, by how much will output and imports change?
In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchange.
When did Federal Reserve chair Janet Yellen say an interest rate increase may be coming, if at all? What are three improvements in the U.S. economy that she wants to see before deciding on increasing interest rates?
kick flip inc. is a specialty skateboard manufacturer. the company is experiencing demand that greatly exceeds capacity
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