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What three key statistics do macroeconomists study to assess the health of the economy? Give a short explanation of each.

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Macroeconomists study real gross domesti...

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What is modern economic growth?

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Modern economic growth is the ...

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Suppose that we are in a condition of "stuck" prices so that the price of wooden chairs will not go above or below $125/unit.Further suppose that chair factories have been built on a business plan designed to deliver 200/month.How many chairs will be sold in a market in which demand (which includes a modest amount of inventory) is characterized by: (a) P = 425 - 1.5Q, (b) P = 530 - 1.5Q, and (c) P = 400 - 0.5Q, where P is in $/chair and Q is in chairs/month? In each case, what happens to planned inventory.

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(a) At $125/chair we get 125 = 425 - 1.5...

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Why do economists worry about unemployment?

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High unemployment rates mean that an eco...

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What will happen to prices and output levels if there is an unexpected decrease in demand and prices are fully flexible?

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In this instance, output is fi...

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"Most prices are not that sticky." Evaluate this claim.

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While some prices like retail gas change...

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If prices are "stuck" and there is an unexpected demand decrease, describe what happens in the economy.

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An unexpected decrease in dema...

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Suppose that we are in a condition of fully flexible prices, but production of nails will not go above 6,000 kg/week.What price will nails sell for if market demand is characterized by: (a) P = 5 - 0.5Q, (b) P = 6 - 0.5Q, and (c) P = 4 - 0.5Q, where P is in $/kg and Q is in thousands of kg/week?

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(a) P = 5 - 0.5(6), P = 5 - 3,...

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Which are the richest and poorest countries listed in Global Perspective6.1.How does Canada compare to these two countries?

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In 2016, the United States was...

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What are two reasons why prices might be sticky?

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First, consumers prefer stable and predi...

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If prices are "stuck" and there is an unexpected demand increase, describe what happens in the economy.

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An unexpected increase in dema...

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