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Contrast the ideas of nominal GDP and real GDP. Why is one more reliable than the other for comparing changes in the standard of living over a series of years? Apply the concept of a price index to comparing the rise and fall of gas prices over a several years. How have you looked at changes in gas prices in the past, in a nominal or a real manner?
The Law of Supply suggests that the price-elasticity of supply is: If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are:
A physical therapy clinic faces a demand equation of Q = 200 – 1.5 × P,
If the interest rate is 5%, what is the present discounted value of receiving $100 in two years? If the present discounted value of $100 received 3 years from now is $81.63, what is the interest rate?
The opportunity cost of consuming good A is lower than the opportunity cost of consuming good B.
Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units o..
Think of the market for cell phones. In a short answer, list at least two (2) events that would cause the demand curve to shift, and at least one (1) event that would cause the supply curve to shift. In your answer, name the event, the curve it will ..
Can anyone think of a program which costs a lot but does not provide long lasting benefits.
In the classical model, a shift to the right of the aggregate demand would result in. If real Gross Domestic Product (GDP) is above its equilibrium level: When private expenditures decrease as a result of increased government spending, this is known ..
Compute the firm's profit from part d. Solve algebraically for the profit maximizing quantity (QM) and price (P M). You should get the same answer as in d.
One critic of the North American Free Trade Agreement argued that "it can't be in our interest to sign this deal; Mexico gains too much from it." What does the theory of the gains from trade have to say about that criticism?
Calculate the monthly interest rate first, then multiply by 12 to obtain the annual percentage rate, APR). Express the interest rate as an integer. For example, for 6%, enter 6.
Find the equilibrium level of real GDP. What is the multiplier in this model? Assume investment increases by $10,000, what is the new equilibrium? Use a "Keynesian Cross" (45 degree line) graph to show the equilibrium level of real GDP in parts ‘a’ a..
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