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Suppose a country enacts a tax policy that discourages investment. As a result, the value of the parameter ¯s now goes to a smaller value ¯s?
a) Assuming that the economy starts at its initial steady state, use the Solow model to explain what happens to the economy (after the change of ¯s) over time and in the long run.
Given this is a monopoly with an expiring patent in 30 days, what price and quantity will result once the competition emerges in this market.
On the other hand, suppose that the Fed has a goal of 10% inflation. Use similar logic as in the previous question to show what the Fed must do to the money supply.
Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers.
develop a list of on-line and text based resources you might use to gather historical economic data as well as economic
Will you be a net borrower or net saver - In exchange for a good grade in this class, you offer me a series of bribes.
Give a hypothetical/real world example of the MR=MC principle (Profit maximizing point). Explain what elements in example represents decreasing marginal revenue/benefit and what element represents increasing marginal cost.
keynesian economists favor active policymaking based on the phillips curve and nairu theories. these theories purport a
What is the policy credibility and how is it relevant to the problem of reducing high inflation How is credibility related to the time inconsistency problem What are the evidence of the Phillips curve.
The price elasticity of demand for long-distance call.
Suppose a drug developer just received a patent on a new chemical compound, which could be used in developing a new drug to control cholesterol. The developer knows (with certainty) that it could successfully develop the compound into a safe
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Since demand elasticity is greater than 1 (absolute value) revenues will be increased, and since price is above marginal costs profits will increase.
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