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What is the Aggregate Demand (AD)? What is the short-run aggregate supply (SRAS)? Describe the reasons for their slope.
Briefly discuss the methods traders use in attempting to evade the difficulties they face in markets that involve "Lemons".
A worker is able to select her weekly hours. When a new bridge opens up, it will cut 1hr from the daily commute to work. If both leisure and income are normal goods, what is the effect of the shorter commute on this persons work time.
The ability for economy to eliminate any imbalances in actual and potential output is sometimes called self-correction. Using an aggregate supply and aggregate demand diagram,
Illustrate what is the adjustment mechanism under a flexible exchange rate regime. Illustrate and explain which curve(s) will shift during the adjustment.
A baseball player earns $1,650,000 a year. Scully estimated that an increase by 1 in the number of games won raises revenues by $286,911. Explain to the general manager of this player's team how you would decide if the player was overpaid,
The firm need a combination of one unit of capital and two units of labor per hour to make ten units of output. The technology is such that an increase in labor has to be accompanied with an increase in capital, and a decrease in labor has to be a..
Explain by how much should domestic automakers raise the price of automobiles if they wish to increase sales by 5 percent next year?
Go to the Bureau of Economic Analysis Web site, and access the BEA interactively through selecting National Accounts and then National Income and Product Account Tables
assume that the combined consumer goods + capital goods values for points a, b, and c are $20 billion, $40 billion, and $38 billion respectively. If the economy moves from point a to point b over a 14-year period, what must have been its annual ra..
A firm has Total Costs (TC) of $12,000 over the next three months (TOTAL for the 3 months - not per month), of which $8,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm..
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.
What will be the level of output and price in the long run if this industry were perfectly competitive?
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