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Suppose we drop the assumption that net exports do not depend on real GDP. Draw a graph with the value of net exports on the vertical axis and the value of real GDP on the horizontal axis. Now, add a line representing the relationship between net exports and real GDP. Does your net exports line have a positive or negative slope? Briefly explain.
In a two-player one shot simultaneous move game, each player can choose strategy A or strategy B. If both players choose strategy A, each player earns a payoff of $400. If both players choose strategy B, each player earns a payoff of $200.
Define a normal profit and an economic profit. Are normal profits being earned in this example? Are economic profits present for this firm in this example?
suppose that the economy is currently at potential output. also suppose that you are an economic policy maker and that
Find the equilibrium price and quantity before and after the tax is implemented. Who pays the majority of the tax, suppliers or demanders? Explain why this makes economic sense.
Review the World Trade Report 2012 from the WTO on trade and public policies (the executive summary is available for review as well) at the WTO Research and Analysis webpage. As you go through this resource, think about what the significance of bo..
Which of the following statements about unemployment and inflation is false? A. The short-run Phillips curve demonstrates a negative relationship between unemployment and inflation, whereas the long-run Phillips curve is horizontal because the nat..
The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $800 at the end of January, $1,700 at the end of February, $2,600 at the end of March,
Examine the control cost estimates, and pro- vide a plausible explanation of why there are incremental costs differences across regions for meeting the PM standard.
Draw the cheese market for the United States showing the world price as the price for this market. How much cheese does the U.S. import at the world price?
Currently, what indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?
You have been contracted by an economic consulting company to estimate the economic structure and possible future actions of OPEC, Organization of Petroleum Exporting nations.
Sometimes it is convenient to think about the consumer's problem in its "dual" form. This alternative approach asks how a person could achieve a given target level of utility at minimal cost. this approach will yield the same choices for this consu..
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