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Determine what happens to the Price and Quantity of the following:
Price of Gasoline has been decreasing. What will happen to the market of automobiles (cars)?
Consider the following points as tips for answering the question.
Question 1. Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market.
Question 2. Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market.
Question 3. Draw a supply-and-demand graph to explain this change. Be sure to label your graph and clearly indicate which curve shifts.
Note: Provide 3 to 4 pages long for a a higher points.
Why is the marginal revenue for the monopolist downward sloping?
If the Federal Reserve sells government bonds, will short-term interest rates rise or fall. Explain how this will affect aggregate demand and the rate of growth of the economy.
Inflation is a a term that is widely used in economics. What happens when there is an Increases in the rate of inflation
According to the Baumol-Tobin model of cash management the combined opportunity and transaction cost of holding currency is C= FN + i Y/2N
The Fed earns enough revenue so that it never has to grovel before a congressional appropriations committee for funding. What purpose is served by this fact?
Illustrate what can you infer from this data about the rate of labor productivity growth in the US economy during this period.
Calculate the value of the trader's assets achieved at liquidation. Express this value of the assets as a percentage of the liabilities before liquidation.
Suppose that owners of high-rise office buildings are the main employers of custodial workers in acity. The city has decided to impose rent controls, and ithas established a rent ceiling below the previous equilibriumrental rate for offices throug..
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How does the LM curve shift? What are the new equilibrium interest rate and level of income - Find the equilibrium interest rate r and the equilibrium level
Graph Real GDP and the employment level for this economy. Please measure real GDP on the y-axis and employment on the x-axis. For this question it is fine to present your answer as an Excel Graph (hint: this is much easier to do with a program lik..
a firm has cost functioncy y2 1 if y gt 00 if y 0let p be the price of output.1 if p 2 how much will
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