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For each of the following scenarios, use a well-labelled diagram of the supply and demand for saving and investment to analyze the effects on the real interest rate, equilibrium investment, and equilibrium national savings.
1. U.S. military involvement abroad declines. As a result, the government deficit shrinks.
2. Concerns about job security cause people to engage in more precautionary savings.
3. A new generation of computer-controlled machines becomes available. These machines produce manufactured goods much more rapidly with fewer defects.
4. Businesses become pessimistic about consumer demand for their products in the future. As a result, they expect that the prices at which they will be able to sell their products at will decline.
Describe a situation where prices have been held out of equilibrium due to government intervention in the market-the obvious ones discussed in the text are rent control and agricultural subsidies. You may use a specific example of one of these, or..
should owners use market research when making decisions about starting or expanding a business POLICY MAKER 1.Government policymakers may be elected politicians or appointed experts. Describe some of the specific decisions made by policymakers that..
country a and country b produce fruit and timber. each country has a labor force of 1200. country a can produce 10
the production function is given by q lk. with w 1 and r 1.a. derive the equation for the firms long-run total cost
outline a microeconomic reform issue that is relevant to the australian economy and how successful do you think these
Consider a portfolio of three assets (A,B,C). Denote the expected returns on each asset as rA; rB; rC, respectively. Denote variances and covariance similarly. Suppose the investor will accept a maximum portfolio variance of X.
Alexander Machine Tools faces the demand curve P = $70 - 0.001Q. What price and quantity maximize total revenue? What is the price elasticity at this point?
The estimated market demand of a commodity X is given as Q=70-3.5P-0.6M+4Pz, where Q=Estimated units of X demanded, P=Price of the goods, M= Money income and Pz= Price of related goods.
How is the price consumption curve derived and what information does it supply to the manager.
economists often study and evaluate economic policies by country or region. as an economist evaluate different regional
getting to know the industry in which a company operates is a critical factor for leveraging information systems and
Are you in favor of either deficit spending on the part of government or one of a balanced federal budget and budget surpluses?
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