Q: Reread the aggregate demand shock example (event #3) in
Reread the aggregate demand shock example (event #3) in Section 13.5. Suppose the parameters of the AS and AD curves take the following values:
See AnswerQ: For each of the following, what type of relationship would you
For each of the following, what type of relationship would you expect between the variables? (a) Sales of hot dogs and sales of hot dog buns (b) The price of winter coats and sales of winter coats...
See AnswerQ: Explain the relationship between changes in opportunity costs and changes in behavior
Explain the relationship between changes in opportunity costs and changes in behavior.
See AnswerQ: Smith says that we should eliminate all pollution in the world.
Smith says that we should eliminate all pollution in the world. Jones disagrees. Who is more likely to be an economist, Smith or Jones? Explain your answer.
See AnswerQ: A friend pays for your lunch. Is this an example of
A friend pays for your lunch. Is this an example of a “free lunch”? Why or why not?
See AnswerQ: A layperson says that a proposed government project simply costs too much
A layperson says that a proposed government project simply costs too much and therefore shouldn’t be undertaken. How might an economist’s evaluation be different?
See AnswerQ: Economists say that individuals make decisions at the margin. What does
Economists say that individuals make decisions at the margin. What does this mean?
See AnswerQ: How would an economist define the efficient amount of time spent playing
How would an economist define the efficient amount of time spent playing tennis?
See AnswerQ: Ivan stops studying before the point at which his marginal benefits of
Ivan stops studying before the point at which his marginal benefits of studying equal his marginal costs. Is Ivan forfeiting any net benefits? Explain your answer.
See AnswerQ: What does an economist mean if she says that there are no
What does an economist mean if she says that there are no $10 bills on the sidewalk?
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