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1. In a recession, share prices tend to be low and companies can be bought at low prices and workers hired for low wages. Given that recessions are only temporary, what stops you from buying loads of stocks in a recession and then selling them during an expansion?
2. If rising in?ation after an oil price increase leads the Central Bank to dramatically in- crease interest rates, what is the impulse behind this business cycle and what is the propaga- tion mechanism?
What different mechanisms are available to the federal government to change aggregate demand Why is a market economy susceptible to coordination failures that can lead to unemployment and inflation
Consider the market for breakfast burritos at the UC Davis CoHo during a typical school day. Assume that there is only one type of burrito.
1. cinema theater has estimated the following demand functions for its moviesdaytime demand qd 400 - 50 pdnbsp
Capitalism refers to: a. the use of markets b. government ownership of capital goods c. private ownership of capital goods d. private ownership of homes & cars
Explain duopoly and monopoly market structures, and identify the key factors that distinguish them.
Using graph, illustrate the effect of an increase of the input price on the production and profit of a one input-one output firm with decreasing return-to-scale technology?
In the mid-to-late 1970's, the yen appreciated relative to the dollar even though Japan's inflation rate was higher than America's.
Derive and graph the output supply functions for each crop. Output supply in this context is the relationship between acres produced and net profitability of the crop.
Write the model in matrix form. Assume the government expenditure G0 = 110, export X0 = 40, and import M0 = 90. What are the equilibrium output, consumption, investment, and taxes in this economy?
w suppose that the interest rate falls to 50%, and the household decides not to borrow or lend at alll. Is the household better off or worse off with the higher interest rate?
What will happen to the price of permits if the government increases the number of permits available and Sketch the supply and demand for emission permits.
The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs.
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