Suppose Potential GDP is $15 trillion. Further suppose that the short-run aggregate supply (SRAS) curve intersects the aggregate demand (AD) curve at a level of Real GDP of $18 trillion and a Price Level of 120 as measured by a price index

a. Draw the Aggregate Demand – Supply Graph for this situation. (Call this point A).

b. Is there an inflationary or a recessionary gap?

c. Assuming no fiscal policy is used, show the long run equilibrium by completing this graph. Show this long run result due to this short run macroeconomic situation in part b. (Call this point B).

d. Will nominal wages change between points A and B? Will they rise, fall, or stay the same?

e. For this question draw a separate graph (drawing the situation in part A of this question). Suppose that instead of the economy self adjusting, the correct fiscal policy in this situation is used. Complete the graph showing the new long run equilibrium after the correct fiscal policy is used in this situation.

1. With the aid of an example, explain how product differentiation can act as an entry barrier and influence a firm’s demand in monopolistic competition?        
2. Monopolistic competition is sometimes criticized for displaying excess capacity. Using a fully labelled diagram, explain how product diffrerenciation can lead to excess capacity in long run equilbrium.                                                                        
3. With reference to your answer in a) and b) above, evaluate whether excess capacity is good or bad for society.                                                                               

1. With the aid of an example, explain how product differentiation can act as an entry barrier and influence a firm’s demand in monopolistic competition?        
2. Monopolistic competition is sometimes criticized for displaying excess capacity. Using a fully labelled diagram, explain how product diffrerenciation can lead to excess capacity in long run equilbrium.                                                                        
3. With reference to your answer in a) and b) above, evaluate whether excess capacity is good or bad for society.                                                                               

how has Airbnb created New Visions for Resources Conservation and Recycling Activities

explain?

Think about the best manager you have ever worked with and talk about what qualities and attributes made them the best. Talk about the things they could have done differently. What were they lacking? Please respond in 250 words.

The daily production data of a firm are given below. The wage rate is MYR 20 per day for each labor (variable input) and it is the only variable cost incurred. Additionally, output refers to the total products and it is in hundreds of units.

Labor	Output	AP	MP	TVC	TC	MC	AFC	AVC	ATC
0	0	-	-		40	-	-	-	-
1	18
2	37
3	57
4	76
5	94
6	111
7	127

a. Complete these production data. Calculate the average and marginal product per labor, the total variable cost, total cost, marginal cost, average fixed cost, average variable cost and average total cost for each level. Show your calculations.

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b. Based on your answer above, evaluate the patterns and relationship between:

1. Total product (TP) and marginal product (MP).

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2. Average product (AP) and marginal product (MP).

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3. Marginal product (MP) and marginal cost (MC).

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[Total: 25 marks]

The Tree Top Airline (TTA) is a small feeder-freight line started with very limited capital to serve the independent petroleum operators in the arid Southwest. All of its planes are identical, although they are pointed different colors. TTA has been contracting its plane overhaul work to Alamo Airmotive for $63,000 per plane per year. TTA estimates that, by building a $200,000 maintenance facility with a life of 6 years and a residual (market) value of $35,000 at the end of its life, they could handle their own overhaul at the cost of only $39,000 per plane per year. What is the minimum number of planes that they must operate to make it economically feasible to build this facility? The MARR is 27 % per year. (Enter your answer as a number without the dollar $ sign.)

Question 1
The core elements of the Growth Employment and Redistribution (GEAR) strategy of the South African government in 1996, under the leadership of the then finance minister Trevor Manuel were amongst other things:
i) budget reform to strengthen the redistributive thrust of expenditure
ii) monetary policy to prevent a resurgence of inflation
iii) a reduction in tariffs to contain input prices and facilitate industrial restructuring, compensating partially for the exchange rate depreciation

1.1 With reference to the above, identify the macroeconomic objectives in these elements.
1.2 Identify and define the macroeconomic variables that can be used to measure whether the strategy was successful or not.
1.3 With each tool in 1.2, provide a detailed explanation on how it can be measured.

. A single-price monopolist has the schedules given in the table below.

Quantity (units)	Price (MYR)	Marginal revenue (MYR)	Marginal cost (MYR)
1	22	20	6
2	20	16	8
3	18	12	12
4	16	8	18
5	14	4	28

a. Determine the profit-maximizing level of output, price as well as the amount of profit or loss at this level. Clarify how you obtain the answer.

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b. Compare between the perfect competition and monopoly market structure.

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A company is considering the purchase of a large stamping machine that will cost $185,000, plus $4,700 transportation and $9,300 installation charges. It is estimated that, at the end of five years, the market value of the machine will be $32,000. The IRS has established that this machine will fall under a three-year MACRS class life category. The justifications for the machine include $26,000 savings per year in labor and $36,000 savings per year in reduced materials. The before-tax MARR is 20% per year, and the effective income tax rate is 40%. What is the after-tax equivalent annual worth of this investment over the five year period which ends with the sale of the machine?    (Do not enter a dollar sign $ with your answer.)

Describe either an adverse selection or moral hazard problem a company is facing. Describe the qualities that make it either adverse selection or moral hazard. What is the source of the asymmetric information? Who is the less-informed party? Are there any wealth-creating transactions not consummated as a result of the asymmetric information? If so, could you consummate them? What advice/recommendations would you give the company? Incorporate concepts from the readings and lectures.

1.a) Do these proposals cause more good than harm, in your opinion, or more harm than good? Why?

b) Would you make a distinction between cars and homes in this case? Why or why not?

c)a proposal to impose a $15,000 limit on total household credit card debt. In your opinion, is this a good idea? Or a bad idea? Why?

Discuss a set of trade barriers that exist in the United States and the impact it has on our economy.

How did the McCarthy investigations into communist subversion impact the nation as a whole when it came to essential rights of the individual. Who opposed him?

1) Why China doesn't sell US bonds owned by the Chinese government? Or why not return them to America and get their money back?

2) In the event of a depression / or economic stagnation, what is the best way for the government to revive the economy? by using government expenses or using taxes? And why?