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1. The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.
2. What role do imports play in aggregate demand? Under which conditions will changes in imports expand aggregate demand? Reduce aggregate demand?
3. Shifts in the Aggregate Supply Curves List and discuss the things that will make the Short Run Aggregate Supply curve shift to the left or to the right. Illustrate. List and discuss the things that will make the Long Run Aggregate Supply curve shift to the left or to the right. Illustrate.
4. What is the natural level of output?
If two countries reach equilibrium in their domestic markets at the same price, what can be said about their export supply and import demand curves and about the international trade equilibrium?
q.bond a is a premium bond with a 12 percent coupon. bond b is a 4 percent coupon bond currently trading at a discount.
Describe how the Monsanto Corporation is a monopolist. How has the government helped the company maintain its power as a monopoly?
Consider a free market with demand equal to Q = 60-4P and supply equal to Q=2P. What is the value of consumer surplus? What is the value of producer surplus?
If there is an inflationary gap in the economy, what fiscal policy decisions would you make to bring the economy back to the full employment point? Explain why in each policy that you make.
A project manager finds that he does not have direct reward power over salaries, bonuses, work assignments, or project funding for members of the project team with whom he interfaces. Does this mean that he is totally deficient in reward power?
You live in a small town with basic medical care facilities and a couple of general practitioner physicians. One of the physicians has said that your cousin needs to be seen by a specialist. However, the nearest specialist is 3000 miles away, on the ..
Which of the following would cause the supply curve to shift to the right in the market for gasoline?
Will’s grade (G) for an upcoming exam depends on the number of hours he studies marginal analysis problems (A), and the number of hours he studies supply and demand problems (R). Specifically, his grade production function is G = 7A0.5R0.5. What is W..
Arian is about to borrow $3,903.71 from his uncle. He has an option to repay the loan at the end of year 6 with 9.73% simple interest per year or with 6.77% interest per year, compounded annually. What is the difference of the total interest paid ove..
Illustrate what impact might such a reduction in purchases of U.S. treasury securities have on the cost of short- also long-term financing.
Consider the following scenario: A toxic waste dump in Alabama has seepage that leaks into the groundwater. Groundwater is used by local residents for drinking and cleaning, in addition to supplying water for irrigation of local agriculture. What doe..
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