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How is the growth of the labor force helping to prevent inflation? support the answer with a graph
What would happen if aggregate demand continued to expand but the growth of the labor force slowed? how would this situation be depicted graphically?
In a closed agricultural economy, a new water source has been discovered that is expected to provide a steady supply of water for the crops and thereby increasing expected output in the future. What happens to the real interest rate and output? Descr..
Suppose that some foreign countries begin to subsidize investment by instituting an investment tax credit. What happens to the investment in our small open economy? What happens to our trade balance? What happens to our real exchange rate?
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price i..
To get going with your business very quickly, you plan to buy an existing business. You expect the business you are buying to have an after tax cash flow $8 million per year for the next 5 years. Your WACC is 10% returns. What is the maximum amount y..
Briefly explicate whether Turbo has a dominant strategy. Briefly explicate whether there is Nash equilibrium in this game.
Read The Reality Check "Do codes Make a Difference?" on page 165 of your textbook. As you read the article, consider the following questions: How could the topic of this article apply to your personal or professional life, and how could it apply to a..
A monopoly firm faces an (inverse) demand curve of P = 196 – 28Q^0.5 + Q and has a constant marginal (and average) cost curve of 49. If the firm can perfectly price discriminate, what are its profits; what are the consumer surplus, producer surplus a..
A lottery winner wins the One Million Dollar Prize. She finds out, after winning, that the payments are actually made annually over the next 20 years in installments of $50,000 each. What is the value of the prize today if ROI is 8%?
Suppose $10,000 is deposited into an account that earns 10% per year for 5 years. At that point in time, uniform end-of-year withdrawals are made such that the account is emptied after the 15th withdrawal. The size of these annual withdrawals is clos..
Explain using graphs why corruption with theft could either decrees or increase the quantity of the good purchased. for both cases (an increase in the quantity purchased and a decrease in the quantity purchase) show or describe who are the winners an..
Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 6%, consider the present and future values of this gift, depending on when you become engaged. The present value of the..
Assume that the U.S. government initiates a stimulus package to help the sluggish U.S. economy. Further assume that, among other things, this package includes $200 billion in government spending as well as 5% tax cuts for consumers. Explain the logic..
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