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Now consider the following information for the U.S.: During 2014, consumption expenditures increased by $20.5 billion, gross private domestic investment declined by $8.8 billion, and government expenditures increased by $14.4 billion. In addition, the country experienced a trade deficit of $3.2 billion. Did the U.S.’s GDP increase or decrease during this year? By how much? Show all work and fully explain your reasoning.
The government wants to make Medicare benefits available to more people, but to achieve this goal, it needs to make cuts in the existing Medicare budget. The two areas where they are considering cuts are non-essential elective surgery and 6-12 month ..
The rapid globalization of capital markets enables persons also institutions based in one nation to invest in corporations based elsewhere with relative ease.
She has no accounting background. Leonard cannot understand why market value is not used as basis for accounting measurement and reporting. Explain what basis is used and why. What is importance of economic entity assumption.
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2 . The turnover cost per labor is (0.36)/(w/p). Find real wage, employment, outp..
This document contains various important questions and their appropriate answers in the subject field of Economics.
Air China is regularly selling out the cargo belly hold capacity on its scheduled Beijing to Los Angeles passenger flights. Air China is considering leasing a Boeing 747-400 freighter (originally a passenger aircraft, but converted to all- cargo) to ..
q.denise is thinking about setting up a butterfly garden in her backyard. she estimates that it will cost her 2000 to
Analyze the determinants of the price elasticity of demand and determine if each of the following products are elastic or inelastic:
The operating cost of a broiler is $20,000 per year for years 1 and 2 and then it increases by 6% per year through year 10. What is the equivalent uniform cost of the broiler (years 1-10) at an interest rate of 9% per year
q.this problem uses the heckscher-ohlin model to predict the direction of trade. consider the construction of handmade
The city of Sheffield, England, has long been associated with the manufacture of high-quality steel and steel products. A Sheffield thwytel [knife] was even mentioned by Chaucer back in the 14th century.
Assume an economy with an aggregate production function of the form Y = 1.5K. If the nation’s population grows at 5%, the rate of depreciation is 3%, and the savings rate is 8%, what is the steady-state output per capita level?
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