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Part A
1. Describe three (3) ways we can use macroeconomic analysis, with one (1) original example for each way.
2. You are running a small yard maintenance business for the summer. What do you expect to happen to the number of yards you can maintain in a day as you add workers if you don't purchase more capital equipment (like mowers and leaf blowers)? Provide at least two (2) supporting facts to support your response.
Part B
1. Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market.
2. Suppose you were interested in increasing technological progress in your country. Suggest two (2) ways to do this.
Assume the US increases tariff on automobiles imported from Germany and other foreign nations. Determine the effect of this tariff-rate increase on
Consider the Bertrand model with no product differentiated in which each firm has a positive and fixed sunk cost F and zero marginal cost. What are the equilibrium prices and profits? Illustrate your result on a proper diagram.
AP. "The rise, and potential fall, of America's banks." MSNBC. Feb. 8,2009. (1) The governmenthas a plan to keep U.S. banks from collapsing. What do analysts expect theplan to include (2) How did we getinto this mess? Describe what happened
Give some examples of how firms in the pure monopoly or near pure monopoly business structure are able to increase profits through price discrimination.
Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of prod..
How does the proliferation of global trade and competition contribute to markets moving away more from market possessing power to more perfect competition?
Most Republicans need to reduce federal spending. Democrats do not want to reduce federal spending by as much as Republicans do.
I owned both of the two Jerry Garcia autographed lithographs in existence. I sold one on eBay for a high price. But when I sold the second one, the price dropped by 80%
Assume a $1,000 par-value bond was issued last year with a promised yearly rate of return (yield) of 6% when market interest rates on comparable securities were also 6%.
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's?
Using the historical tables from the Budget of the US government, utilize the website to determine where the US government allocates its expenditures.
An entrepreneur plans to convert a building she owns into a video-game arcade. Her main decision is how many games to purchase for the arcade.
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