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There are linkages between the microeconomic decisions made by managers and the macroeconomic environment. There are numerous examples from the current recession of company layoffs at the micro level, directly influenced by the decline in economic activity at the macro level.
For this assignment, research this linkage. How did the recession impact businesses/managers at the macro and micro levels? You may use one company as the basis of your research.
Which of the following is NOT an example of controlling risk?
Burger King and Wendy’s are engaging into the following one-shot game: if Burger King advertises and Wendy’s does not, Burger King will make $20 million in profits and Wendy’s will make $6 million. Write the payoff matrix for the above game. Does Bur..
Does it seem logical that the amount of labor supplied (hours worked) will decrease if the wage rate gets high enough? Why or why not? Will this phenomenon differ as related to a summer job or permanent employment?
Japan's rapid growth pushed its real GDP per capita above that of the United States. Growth rates in follower nations such as South Korea and Hong Kong averaged about 10 percent per year.
Suppose that the government imposed a $1 tax each time someone used an ATM. How would this tax affect output and the price level in the short and long run?
Graph the Bens consumption function also find their households marginal propensity to consume.
In sharp contrast to the oil shocks of the 1970’s, the price of oil substantially declined in the early part of the 1990’s. Can this explain the good performance of both inflation and unemployment in the 1990’s? What has been the probably effect on t..
Consider the table below when answering the following questions. For hypothetical economy, the marginal propensity to save is constant at all levels of real GDP, and investment spending in autonomous. Complete the table. What is the marginal propensi..
Trace the path of a recent food-borne illness outbreak in the U.S. How could this have been prevented? What changes have been made as a result of this outbreak?
From time to time, governments launch some economic policies to stimulate the economy. In recent years the US government has initiated economic stimulus packages to help the sluggish US economy. Among other thing, these packages include a one-time pa..
borrow 1000 at t=0. Make exact interest only payments at the end of each year for 4 years and at the end of the 4th year repay the entire principal in addition to the last interest payment. borrow 10000 at t=0. Pay a principal payment each year of 25..
Valles Global Industries (VGI) is considering selling a product. The contract sells parts for revenue of $65 million a year for 5 years. Their initial investment is $250 million and the equipment has no salvage at 5 years. They estimate production co..
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