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Q1. Suppose China produces both agricultural and capital goods. Draw and show the change in the PPF when an outbreak of avian flu sickens millions of agricultural and industrial workers.
Q2. According to the traditional theory of marginal utility as presented in the textbook, as more units of a good are acquired, the consumer's marginal utility.
Q3. 1. What is the relationship between the MPC and the Multiplier? (explain or state the equations)
2. What do you mean by the Multiplier Effect? Describe this effect.
3. Explain what happens to aggregate demand in these situations:
a) pessimistic firms decease investment spending.
b) Government spending increases to try to stimulate the economy
c. presently price level decreases.
Suppose that on January 1, the price of one hundred yen was $0.80 and PPP held. Over the year, the Japanese inflation rate was 5 percent and the U.S. inflation rate was 10 percent.
Firms raise capital from investors by issuing shares in the primary markets
Solve for steady-state level of captial and output. What savings rate would be necessary to achieve a steady-state output of 150.
A farmer has a production function f(L) where the input is capital (L). The cost of this loan is L(1+i). The farmer also has an outside option (loan from family member) which generates a profit of A.
Why is monitoring and controlling the project cost important for the success of the project.
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence.
Does Ike feel emotionally neutral since the dollar value of the gain in his stock portfolio exactly offsets the amount of extra taxes he has to pay
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
The US put a specific tariff of €10 on European widgets. Calculate the new equilibrium quantity and price as well as the new Monopoly's profit.
the mainstream theory of the business cycle, is the most common source of reciession: a decrease in aggregate demand, a decrease in aggregate supply, or both.
Similarities in the definitions of management quoted from authors of management textbooks
Which of these same curve would shift as a result of the per-burger tax. Curves average fixed cost,marginal cost would shift as a result.
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