#1 Starting at a point of long term equilibrium.
Suppose there is a massive increase in AD due to a rapid increase in consumption due to excess spending (over exuberant consumption)
Using the ADAS model show, what will happen when AD shifts
What will happen if the Fed does nothing?
What policies should the Fed undertake?
Show what will happen to interest rates on the Money Market graph
What effect will this action have on interest rates and AD (show on the ADAS model)
#2 Starting at a point of long term equilibrium.
Suppose there is a recession caused by falling AD due to a rapid reduction of consumption and business investment due to a panic in the financial markets. (This is what happened in the crash of 2008)
Using the ADAS model, show the recession unfold on the graph as AD shifts
What will happen if the Fed does nothing?
What policies should the Fed undertake?
Show what will happen to interest rates on the Money Market graph
What effect will this action have on interest rates and AD (show on the ADAS model)
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What are the core competencies of Cloudstaff and Datacom? What are their advantages over each other? Please give an example (comparison in the form of a table, and need to attach reference)
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The production function for a firm in the business of calculator assembly is given by ? = 2√?. Where q denotes finished calculator output and l denotes hours of labor input. The firm is a price taker both for its output (which sells at P) and for workers (which can be hired at a wage rate of w per hour).
(a) What is the total cost function for this firm? [Hint: write total cost function as a function of output q and input price w.]
(b) What is the supply function for assembled calculators when the firm maximizes its profit? [The supply function is essentially the optimal output as a function of all prices].
(c) Using the results in (a) and (b), obtain the firm’s profit function. [Hint: Write the profit function as a function of P and w].
(i) How does an increase in output price affect the profit of the firm? Explain
(ii) Is the profit function homogeneous of degree 0, 1, or 2? Explain
(d) What is the firm’s input demand function for labor? [Hint: write the input demand function as a function of P and w].
(i) How does an increase in the wage rate affect the demand for labor? Explain.
(ii) Is the input demand function homogeneous of degree 0, 1, or 2? Explain.
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1) What explains the fall in inequality from 2002 to 2010 in Latin America? In your answer be sure to explain the reasons for the changes in returns to education.
2) Why did the Latin America experience with industrialization from Word War I until World War II lead Latin American Structuralists to believe that it was necessary to limit imported manufacturing into Latin America?
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Consider two countries, Home and Foreign, trading two goods, Rice and Car. The Home country is endowed with abundant capital relative to labor and hence has comparative advantage to specialize in Cars; whereas the Foreign country is endowed with abundant labor and specializes in Rice. Once they start trading, the price of car decreases, and the price of rice increases in the Foreign country. How would the decrease in the price of car affect the income of each of the following factors under each trade model in the Foreign country?
a. Ricardo Trade model i. Real wage earned by labor
b. The Specific-factors trade model i. Rental rate of capital ii. Rental rate of land iii. Real wage earned by labor
c. The Heckscher- Ohlin (H.O.) Trade model i. Rental rate of capital ii. Real wage earned by labor
d. Is there a gain from trade for the foreign country under the H.O. Model? Explain (you may use a graph to illustrate your answer)
Need Answer ASAP please!!!! I pay for this app for this reason!
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how the tax system contribute to development of Labuan IBFC?
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Over the past seven weeks, we have explored different decades of US history and applied principles of macroeconomics to their outcomes. Take this time to share what you have learned with your classmates. In your initial post, respond to the following:
Choose one macroeconomic concept you applied in your final project of the years 2000-2010. Explain how it helps describe the economic outcomes of the decade you researched during 2000-2010.
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2a. The reserve requirement is 20% and the FED buys 200 billion dollars of government securities. What is the maximum expansion possible in the money supply?
2b. (30 points) Explain how the change in the money supply in question 2a works its way through the economy to affect employment, inventories, GDP, and interest rates. Be sure to explain the causality chain, not just what happens to each variable.
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Q. Why some governments resort to price ceiling and price floor for some goods and services? Describe three most important disadvantages of price ceiling and price floor? In what conditions do think that price ceiling and price floor may contribute to the welfare of people?
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Q. What is a patent? If a patent serves as barrier to entry, why do governments issue patents?
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Q. Elaborate the three most important characteristics of an oligopoly market. Give three examples of oligopolistic industries in Saudi Arabia.
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What is the effect of an increase in the investment rate on the level of steady-state output per worker in the Solow model? Show in a graph.
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Q. Why a firm remains in business even by earning zero economic profit? Elaborate the answer.
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What is the relationship between bond prices and interest rates? Give an intuitive explanation of why this relationship exists.
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