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Consider a small country that is an exporter of good X. Suppose the government imposes a tariff on imports of good X
Using one graph, showing demand and supply of good X in the home country, carefully illustrate the effect of a tariff imposed by the home country. Explain
how much should you be able to get if you sell your future inheritance to the Neopolitan Bank (or any other bank) right now? Explain your work and why your answer makes in
If the market price stays the same, but the fixed costs of the firm increase so that the total cost function becomes: TC = 18 + 17 Q - 4 Q2 + Q3 What will be the profit-maximi
Suppose that the demand curve for a product is given by P=36-Q where P is in thousands of dollars per auto and quantity is in millions of cars per year. Please make a graph of
Demand Shocks – As we’ll continue to discuss in class, a recession may reflect declines in aggregate demand, aggregate supply, or both. Are swings in consumer sentiment charac
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 18,000 -5Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 2,000QL and
On 18 Sept 2017, Officer Steve Jones received an anonymous tip that Mr. James Fox lived in a house at 120 Verlinden Drive and is growing marijuana in the basement – at least 4
Assume that wages and prices are sticky and that we start at a long run equilibrium. Assume that at this initial point, the growth rate of the money supply is 6%, the growth r
Understand why depositing cash on a checking account does not affect money supply immediately. Understand why when a commercial bank buys government securities from its client
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