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Suppose a consumer’s preferences over goods 1 and 2 are represented by the utility function u(x, y) = (x+ y)^3. Draw an indifference curve for this consumer and indicate its slope.
q.address the following questions1. what is the elasticity of the demand for cookbooks bought this way?2. is the
For each of the following, use an ADIIA graph to show the short-run effects on output and inflation. Assume the economy starts in long-run equilibrium.
Which of the following would cause an increase in long-run aggregate supply?
q1. alexs furniture mart produces and sells tables in a perfectly competitive market. when alexs furniture mart
q. assume labor supply is given by w102ls where w denotes the wage. labor demand is given by w 100-ld.a compute
What criteria would you apply to determine where such a policy is or is not successful. Judging from your own stated criteria, was Japan's exercise successful. Why or Why not.
Explain the two approaches that can be used to compute GDP. Why do these two approaches lead to the same value for GDP? Explain why real GDP is a more reliable estimate of economic growth than nominal GDP.
Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on..
If you were Chairperson of the Federal Reserve. Show each of the following shocks on an IS-MP diagram. Consumers become pessimistic about the state of the economy and future productivity growth. Improvements in the information technology increase pr..
A firm is considering whether the following project should be undertaken if its life is 10 years and it has no salvage value. The firm uses an interest rate of 10% to evaluate engineering projects. The Net Revenue below is dollars per year for the li..
In the absence of regulation, firm 1 would emit 15 and firm 2 would emit 20. The firms have the following marginal control costs where q1 and q2 are the amount of emissions reduced by each firm. If instead an emission permit system was established, h..
Does overvaluation (undervaluation) of As currency reflect a major capital inflow (outflow) into country. What can you find with respect to financial account of balance of payments to substantiate that interpretation.
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