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Using the broken window fallacy as described in “In The News” (p. 14 of Principles of Microeconomics), explain why some journalists, policy makers, and others proclaim that natural disasters are good for the economy in terms of eliminating old infrastructure and helping to create jobs. Do you agree or disagree? Provide specific examples to support your answers.
Write down an expression for the profit GBC will make if it uses L units of labor at $1 an hour and sells the resulting output of cookies at $p a cookie.
What must she/he expect to happen to short term interest rates over the coming year.
q.in 2008 financial crisis has basis macroeconomists to re-think monetary as well as fiscal policies. financial experts
Suraj Metals are expected to declare a dividend of Rs. 5 per share and the growth rate in dividends is expected to grow @ 10% p.a. The price of one share is currently at Rs. 110 in the market. What is the cost of equity capital to the company?
During the summer, there are several hot dog stands spread around downtown Boston. They sell very similar products, have little leverage over their market's price, earn little long-run profit, and are not protected from entry and exit by laws and reg..
Supposed we include X1 in our single regression € Y = β0 + β1X1 + u , but we leave out X2, a variable that is negatively correlated with the included variable X1. X2 is a determinant of Y (the dependent variable), and the effect of X2 on Y is positiv..
What will happen to the rate of inflation? How would the central bank react to the change in velocity if it pursued an NGDP target instead of a money stock target?
Use the classical theory of distribution to predict the impact on the real wage and the real rental price of capital of each of the following events. A technological advancement improve the production function
Islandia is a completely isolated island that has a fixed stock of 100,000 tons of coal. Islandia will survive for two periods. Consumers in Islandia having a declining marginal benefit of coal consumption in each period. Assume the real interest rat..
Astrachan contends that ____ men express the most hostility when women enter into traditionally male occupations and are more threatened by the overall competence of women.
Suppose an olligopoly consists of two firms Firm A lowers price and Firm B responds by lowering its price by the same amount. If averages costs and industry output remain the same, which of the following what will occur
What is the difference between a solicited proposal and an unsolicited proposal?
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