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Question: Here is a puzzle. A country with a relatively small positive aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive increases in the AD curve (hyperinflation countries like Germany before World War II, e.g.) don't seem to have massive economic booms. Why does a small AD increase sometimes raise GDP much more than a giant AD increase?
a. What, if anything, can be viewed as a sunk cost? b. What is the rule, as a function of quantity and price, as to whether this manufacturer should shut down? c. If the estimated demand is 500,000 phones, what is the break-even price for phone?
Consider a simple economy with only Robinson Crusoe, coconuts and leisure. He has utility U (c,l) = c^(1/2)*l and a production function C=L^(1/2), where c is the amount of coconuts he consumes, l is the amount of leisure he consumes, and L is the ..
Economists argue that successful business depends on creating sustainable and effective supply and demand networks. If you own (manage) a business, how do you create effective demand and effective supply to maximize profit?
Consider the following statement: “Because deficit reduction is costly to the economy, governments should never run budget deficits.”Do you agree with this statement? Briefly explain.
Discuss three automatic expenditures in the federal budget. What is the difference between discretionary fiscal policy and automatic stabilizers?
In recent months, there has been lots of discussion about increasing the federal minimum wage?
Economic theories and models are concerned with economic variables and variables are measures that can take on different sizes. Explain how an interest on a student's loan is a variable?
It is often the case in economic models that we estimate models using the log of the key variables. Re-estimate the model using the following model:
How would market forces affect the amount of time the proven oil reserves will last, assuming no new oil reserves are found and that the demand curve remains unchanged?
ECON310 International Economics Assignment. What are the challenges of the international trading system? Explain General equilibrium of an Economy with help of a Diagram
Although he was a prolific artist, Pablo Picasso painted only 1,000 canvases during his "blue period." Picasso is now dead, and all of his Blue Period works are currently on display in museums and private galleries throughout Europe and the United..
Describe what degree of concentration it exhibits. Would it be considered an oligopoly.
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