Now, let’s apply your knowledge of the ad/as model to predict the effect on economic variables (i. e., p, rgdp, interest rates, wages, savings and spending) of some events on the u. s. economy. diagram the effect of the following events. be sure to explain the effects in the short run and effects in the long run for each question, in words. to keep things clear, assume that in each case the economy starts out at long-run equilibrium.

a. labor unions become better organized, and this allows them to drive up wages in the short run in the u. s. (3 points)
b. tensions in south america dramatically increase the price of coffee. for the sake of argument, suppose coffee is an important input in many industries, including computer programming, transportation, and financial services. (3 points)
c. the government increases both taxes and spending by $500 billion. the money is spent domestically. hint: be sure to provide a strict interpretation of the ad/as model as part of your answer. (3 points)
d. suddenly, foreign countries sell great quantities of important inputs such as steel and computer chips at very low prices in this country. hint: the long-run effect will depend on whether the price decrease is permanent or not. (3 points)

The market price of cheeseburgers in a college town increased recently, and the students in an economics class are debating the cause of the price increase. some students suggest that the price increased because the price of beef, an important ingredient for making cheeseburgers, has increased. other students attribute the increase in the price of cheeseburgers to a recent increase in college student enrollment.1. the first group of students thinks the increase in the price of cheeseburgers is due to the fact that the price of beef, an important ingredient for making cheeseburgers, has increased. (what happened to demand and supply, shift to the right or left)2. the second group of students attributes the increase in the price of cheeseburgers to the increase in college student enrollment. (what happens to demand and supply, shift to the right or left)3. suppose that both of the events you analyzed above are partly responsible for the increase in the price of cheeseburgers. based on your analysis of the explanations offered by the two groups of students, how would you figure out which of the possible causes was the dominant cause of the increase in the price of cheeseburgers? (choose a, b, c, or d)a)if the price increase was small, then the supply shift in the market for cheeseburgers must have been larger than the demand shift. b)if the equilibrium quantity of cheeseburgers decreases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift. c)if the equilibrium quantity of cheeseburgers decreases, then the supply shift in the market for cheeseburgers must have been larger than the demand shift. d)whichever change occurred first must have been the primary cause of the change in the price of cheeseburgers.

Which type of market are you in if your company, along with three other companies, controls 95 percent of the total music industry?

Double corporation acquired all of the common stock of simple company for