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Q1. Suppose we use two inputs, let's say capital and labor, and the price of capital is Pk and the price of labor is Pl. If we want to know the optimal input combination in the long run, what condition must be met?
Q2. If the consumer budget constraint is given by 4F + 1 S = 994, where F is food and S is shelter, Explain how much shelter can she buy if she purchases 2 units of food? (Round your answer to 1 decimal point)
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary and fiscal policy should they use.
Specialty Steel has carefully measured production in its new plant to determine whether it is technically efficient in production.
If the Federal Reserve adopts a restrictive monetary policy that leads to relatively high interest ratesin United States, what happens to the demand and supply of foreign currency and the dollar's exchange value.
Congresswoman Gaga represents a state in which several firms fabricate furniture. She needs to impose tariffs on all imported furniture.
What would the annual percentage change in velocity have to be on average for the quantity theory to hold.
What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
What can be accomplished about the impact of transportation costs on the price of the traded product in each trading nation.
Assume that he marries her the subsequent year. Other things equal, which of the following would be true concerning the reported official GDP the following year.
Based on the IRS actuarial table, Mario has a life expectancy of 20 years. If Mario receives 12 monthly payments of $1000 the first year, how much taxable income must he report on his tax return.
What s the general pattern of the US income distribution over the last century. Explain about the timing of the changes.
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