Consider a positive supply shock, i.e. a sharp decrease in energy prices. Show how the economy adjust to the Medium-Run equilibrium, and discuss how the FED determines the policy rate. Use the IS-LM-PC model to graph your answer.
In: Economics
Suppose the market demand and supply functions are Qd=
32,000-20P and Qs=30P+750. You have just graduated and moved to
this city; as a new MBA and an entrepreneur, you are considering
entering the market for this product.
a. Determine the equilibrium price and quantity in this market.
b. TC=5000+1000Q-12Q^2+0.08Q^3. Determine whether or not you should enter this market.
c. Due to unforeseen delays, you don’t enter the market. However, a year later the market supply has changed to Qs=30P+1500. Are you surprised at this shift in supply?
d. Given the new supply conditions, determine whether or not you should enter the market.
In: Economics
In: Economics
In: Economics
If optimal capacity of a university is 4000 students and the current students is 3500 students, implement the concept of economics to scale capacity strategy to determine the maximum number allowed to be accepted for the new academic year
In: Economics
Write a small essay on What is the Hanushek critique? Do you think it accurately portrays the relationship between inputs and outputs in education? Why or why not? What evidence supports your argument?
In: Economics
1) describe what is meant by Tiebout choice. Do you think Tiebout choice provides for enough choice for parents over where their child attends school? Why or why not? What are the advantages of Tiebout choice? What are the disadvantages of Tiebout choice? What assumptions does the Tiebout choice model rely on in order for it to be efficient?
In: Economics
Researchers claim that there is positive relationship between economic development and democracy in a country. Yet the case of China seems to contradict this general pattern of findings. According to this what may explain the persistence of the Communist party dictatorship in China despite the rise of its economic prosperity since the 1980s?
In: Economics
Define Life on Land
How does Land affect production
How does Land affect consumption
How is Life on Land good for Sustainable Development
please include the sources that you used to find the answers to there questions
In: Economics
Should the government regulate the natural monopoly? Explain.
In: Economics
How does advertising impact monopolistic competition?
In: Economics
In: Economics
how consumer spending impacts economic growth
In: Economics
Assume that GDP (Y) is 7,500, which is also the full employment level of real GDP. Consumption (C) is given by C = 700 + 0.75(Y – T). Investment (I) is given by the equation I = 2000 – 200r, where r is the rate of interest in percent. Taxes (T) are 500 and government spending (G) is 500. The world interest rate (r*) is equal to 4 percent.
Use the data above to calculate:
Consumption = and National Saving =
Assuming domestic firms can borrow or lend as much as they want at the world rate of interest, Investment = . Therefore, net foreign investment = and net exports = .
Do these numbers imply that this country is a net lender or a net debtor?
Do these numbers imply that this country has a trade surplus or a trade deficit?
If government uses an expansionary fiscal policy, will the national saving function shift right or left?
Will the change in national saving resulting from an expansionary fiscal policy cause net exports to increase or decrease?
In: Economics
In: Economics