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Two drivers - Tom and Jerry - each drive up to a gas station. Before looking at the price, each places an order. Tom says, "I'd like 10 gallons of gas." Jerry says, "I'd like $10 of gas." What is each driver's price elasticity of demand?
A local lending institution advertises the “51-50 Club.” A person may borrow $2000 and repay $51 for the next 50 months, beginning 30 days after receiving the money. Compute the nominal annual interest rate for this loan.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume.
What are the effects on the French balance of payments of the following set of transactions? Les Fleurs de France, the French subsidiary of a British company, The Flowers of Britain, has just received.
Brian and Allen are thirty years old with identical academic records and job history. Both currently have jobs paying $40,000 each year.
Illustrate what role does economics play in your personal and organizations decisions. Give an example of the role of economics in decision making.
List the federal government's three most important sources of tax revenue. How do these differ from your state government's three most important sources of tax revenue Why do you think that these different government entities use different tax bas..
Why would the simple Keynesian consumption function predict that this strategy would work and the nominal interest rate cannot fall below zero. What might the Fed do to try to achieve the optimal real interest rate you calculate in Part b?
Graph Real GDP and the employment level for this economy. Please measure real GDP on the y-axis and employment on the x-axis. For this question it is fine to present your answer as an Excel Graph (hint: this is much easier to do with a program lik..
Consider a tropical island economy with 2-sectors, souvenir manufacturing and hospitality. Both sectors are perfectly competitive, and workers are equally able and willing to work in either industry.
Suppose the economy is in full employment and suddenly there is a fall in the domestic price level. What would happen to output and the current account in this economy?
assume an open mixed economy. that is foreign trade is part of the economy and the economy includes both a public
The World Bank is presently advising newly industrialized nations on how to encourage growth and they have asked for your help.
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