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The U.S. capitalist system relies on a theoretical model, the circular flow model, with three basic elements interacting together to ensure that our needs and wants are provided. The three sectors are (a) consumer, (b) business, and (c) government. The circular flow model shows us that input from each sector spurs on production, and thus goods and services are created. Become familiar with the circular flow model it is primary to your understanding of the US economy cycle.
Compare and contrast the circular flow model and a simple flow model. Address what happens to price and quantity in changes in demand and supply. Be succinct, detailed, and clear in the explanation of what will happen to changes in the circular flow model?
Julie spends all of her $60,000 salary on vacationing and remodeling projects. Her typical vacation costs $2,000 and the remodeling projects cost $4,000 each. What two conditions must be met for Julie to be maximizing her utility? solve the condition..
Suppose that the market for polo shirts is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.
The book discusses the Efficient Market Hypothesis (EMH) and its three forms. The EMH has a lot to do with information and stock prices. How does information get into prices? How do we know if prices reflect all available information?
We want to determine if the training program was effective. Compute the test statistic. At 95% confidence, test the hypotheses. That is, did the training program actually increase the production rates?
Consider competitive markets, monopolies, and oligopolies. Illustrate what role does each of these play in an economy.
One way to eliminating the tax on capital gains is to index gains for inflation. According to recent U.S. government statistics, $1 in 1972 had the purchasing power of about $3 in 2012. What would be the effect of adjusting capital gains for inflatio..
How do I determine the values for P,D,Q for an ARIMA model? I have already done the differencing; I am having trouble understanding how to determine the individual variables.
Describe how the following statements relate to the AD–AS model:
Assume that the history of the game is common knowledge. That is, in period t, the past choices of effort for all doctors over periods 1, ..., t - 1 are observed
Illustrate how the market, if left alone, would move us out of the recessionary gap. Also, explain all, if any, fiscal policy steps that can be used to lift us out of the recessionary gap. Explain which method, the market or fiscal policy, do you ..
International data show a positive correlation (i.e, relationship) between political stability and economic growth. Through what mechanism could political stability lead to strong economic growth? Through what mechanism could strong economic growth l..
Semiconductor chips are used to store information in electronic products, such as personal computers. One of the early leaders in the production of these chips was Texas Instruments (TI).
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