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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 wage-price rigidity? Do you agree with Keynes assessment that wage-price rigidity requires government's involvement in the markets? Why? Why not?
Beginning from an initial equilibrium, draw the effects of the changes in the following list in terms of the relevant supply and demand curves. a. an increase in the price of hot dogs on the hamburger market.
Discuss the economic, social, and cultural reasons for differences between the population densities in these two regions. Evaluate the polices of the DN with those of the LDN you chose as they relate to reducing the population/fertility rates. Explai..
Does an increase in foreign income cause recession or inflation? Why?
Explain how does the Concept of Comparative Advantage actually "prove the advantages" of free trade to both countries involved in a transaction.
Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP is 2 percent above potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real federal funds rate?
Three countries USA, Canada and France. Using provided graphs, in 350 words discuss reasons why the economic growth of the three countries varies.
Assume the United States government determines that the cigarette smoking creates social expenses not reflected in current price of cigarettes in the market.
How would you define the American Dream? How important is money as a measure of success? Is it still realistic to think about becoming wealthy in this country?
If investors expect an increase in the interest rate paid on US deposits, how the Australian exchange rate will change? Explain
In the 1990s, five firms supplied amateur color film in the United States: Kodak, Fuji, Konica, Agfa, and 3M. From a technical viewpoint, there was little difference in the quality of color film produced by these firms, yet Kodak's market share wa..
Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion i..
Analyzing Cite a case in your community where a cooperative would fulfill a definite economic need. Explain why you think so.
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