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Why is it necessary for all economic system to not only provide poepl with goods and services but also restricts them from getting as much of these goods and services as they wish?
Assume an economy in long and short run equilibrium in the Aggregate Deamnd/Aggregate Supply model. There is a sudden drop in consumer confidence in the solvency of pension funds. Explain, with support from a graph, how this is shown in the AD/AS ..
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the..
Suppose that a business has developed a very high-quality product and operates more efficiently in producing that product than any other potential competitor.
Illustrate what do you think would the futures price of 100 shares of your reference company to be delivered to you in one year be right now.
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Discuss how rapid inflation can undermine money's ability to perform each of the three functions.
Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $260. The inverse market demand for this product is P = 800 - 4Q. a. Determine the equilibrium level of output in the market. b. Determin..
Groovy Tuesday, a clothing maker, has found that their costs can be approximated by the equation: C = 500 + 2Q2. The consulting company they hired to estimate their current demand determined that demand is characterized by:
A story in the WSJ not too long ago suggested that the Justice Department might file legal actions against a number of large oil companies because there is evidence that they shared salary information on their professional.
Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP?
If the substitution effect dominates the income effect, then as increase in the wage rate will increase the quantity of labor supplied by an individual. The more complicated a production process is
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..
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