Q1. Illustrate what are the key determinants of Spectrum Healthcare Resources fixed cost and variable cost in short-run?
Q2. Assume which an economy has the aggregate demand curve:
Y = 500 + 1.25G + 0.625 M / P
and the cost adjustment schedule
π = πe + [Y-1 - 1, 250]
1,250
Government spending is $200 and the money supply $800. If Po = 0.8, Illustrate what would you be? Will this place upward or downward pressure on the costs?