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Assume there is only one good in the economy,Wheat. The economy has enough labour capital, and land to produce Y=800 bushels of wheat. In 2005,M=2000 dollar, P=5 dollar/bushel.
1)Compute the nominal GDP and the velocity of money in 2005
2)Assume that the output remains unchanged in 2006, and the central bank increases the money supply by 5%, to 2100 dollar. Compute the 2006 values of the nominal GDP and P. Compute the inflation rate in 2006.
3)Now suppose that technological progress causes Y to increase to 824 in 2006, and the central bank increases the money supply by 5%, to 2100 dollar. Compute the inflation rate in 2006
How can patents speed up the process of creative destruction? How can patents slow down the process of creative destruction?
Compute the MIRR we need a finance rate and an reinvestment rate and finance and a reinvestment rate are needed to compute the return on invested capital (RIC) for non-simple cash flows.
Many firms consider their wage costs to be variable costs. Why, then, do publishers usually consider their wage and salary costs to be fixed costs? Are the costs of utilities always fixed, are they always variable, or can they be both? Briefly exp..
Draw a graph and analyse what would happen to the domestic supply of rice and supply curve, consumer price of rice and domestic demand for rice, and cost of rice production. Calculate the actual values of change in consumer surplus, producer surpl..
When inputs are combined so that total production has the lowest possible cost, we are observing - Define as total implicit costs.
The average 15-year old purchases 12 CDs and 15 cheese pizzas in the typical year. If cheese pizzas are inferior goods, would the average 15-year old be indifferent between receiving the $30 gift certificate at local music store and $30 in cash?
The perfectly competitive company takes the equilibrium value set through the market and maximizes profit through manufacturing where price, which also equals marginal revenue, is equal to marginal cost.
Suppose the marginal costs of production for a company is $6 at its current production levels. suppose the price elasticity of demand is constant at -2 between the prices of $10 to $15, if the current prices are $10 is the company pricing at the corr..
What is the price elasticity of demand for tours? Interpret your answer. Given this elasticity, should Breakaway increase prices to increase revenue? Explain.
If we are talking about setting prices or determining output even in a very large company such as an oil or steel producer wouldn't this be considered a microeconomics issue
The demand for housing its often described as being highly cyclical and very sensitive to housing prices and interest these characteristics describe the effect of each of the following in terms of whether it would increase or decrease the quantity de..
Discuss how an increase in the taxes you pay (income tax, sales tax, property tax, car tag,.. etc.) will influence your spending and saving. Include the pros and cons of a tax increase.Requirements: Discussion should be at least 4 full sentences.
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