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Use the following supply data along with the demand data from exercise 2 to determine the market equilibrium price and market equilibrium demand.
Question: Who would be better able to analyze this market, a microeconomist or a macroeconomist? Question: How would you describe the opportunity cost for cattle ranchers?
In an expansionary fiscal policy to overcome the current recession, the Federal Government increases its spending to impprove the nation's physical infrastructure (roads, airports, seaports, airport
Purpose a monetary policy action that could eliminate a recessionary gap in the short run.
In an economy in which velocity is constant and the level of real output grows at an average rate of 4 percent per year, a 4 percent average rate of growth in the money supply would result in
In the aggregate demand-aggregate supply model, a decrease in the money supply will cause in the short run a(n)
Sum the individual firm supply curves to derive the market supply curve. Plot the market demand and market supply curve with price as a function of output to illustrate the equilibrium price and lev
Brynjolfsson et. al.'s model of consumer surplus provides a quantitative measure of the value of the Long Tail. Outline a method, and the kind of data that you would want, in order to apply this mod
You observe that output is above full-employment output. Politicians are arguing about the possible reasons. One party claims that this is due to a drop in world oil prices.
Draw out multiple supply/demand graphs and identify (in color) where you have: 1) Consumer Surplus, 2) Producer Surplus, 3) Consumer Deadweight Loss, and 4) Producer Deadweight Loss.
Which of the given changes to fiscal policy would have a larger overall impact on Aggregate Demand? Explain your answer in a paragraph or 2.
Use the formula r =f'(k) to calculate the steady-state rentals rate. Explain why the real interest rate is r-n-δ. (Hint: if you give up a unit of consumption, you can buy a unit of capit
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market.
There are few signs of emerging excesses that even undermined America's own banking system at the end of the 1980's...Again, of course, a significant fall in asset prices would harm balance sheets,
The question asked that suppose that the Organization of Petroleum Exporting Countries raises oil prices by 50 percent in 2005. What effect will thishave on the U.S. Aggregate demand curve? On the U
Assume that the aggregate demand for fish is given by Q = D(P), where P is the price of fish. How will the price and quantity of fish be determined in equilibrium?
Problem: Why can output rise "without inflation" in the "Keynesian" range of the aggregate supply curve?
Use autonomous spending and the multiplier to calculate the equilibrium level of real GDP demanded.
Problem: Under what circumstances would a rise in aggregate demand have little effect on real national income?
Now let the government pursue a policy of holding the money supply constant at 500, and spending G = 300. What will be the level of income and the rate of interest?
(1) How would higher duty on softwood lumber affect the equilibrium income and the price level in the short run? (2) How would higher duty on softwood lumber affect the equilibrium income and the pr
Explain in detail why the aggregate demand curve slopes down. Specify how your explanation differs from the rationale behind the downward sloping demand curve for a single product?
Write a paper describing my assessment of the current aggregate demand and aggregate suppy curves; my prediction and prescription for the near future. sources must be sited.
Would each of the following increase, decrease, or have no impact on the ability of open-market operations to affect aggregate demand? Explain your answer.
Problem: A classical economist spends a good deal of time worrying that: