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An increase in nominal GDP accompanied by a decrease in real GDP: A. is impossible. B. implies that the price level in the economy fell. C. implies that the price level in the economy rose. D. implies that the price level in the economy remained the same.
The great 18th century economist Adam Smith wrote, "Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought abo..
The World Bank projects that the world's population will increase from 7 billion to 8 billion in 2025. World output today is roughly $80 trillion. What is global per capita income today? What will per capita income be in 2025 if the world's economy d..
Suppose there are two types of customers for a cell phone service: undergraduates (U) and grad Students (G). The aggregate (inverse) demand curve for undergraduates is PU = 100 − 0.25QU and the aggregate (inverse) demand curve for the graduate studen..
What would the' peso- dollar exchange rate be if purchasing-power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose.
One of the central questions that society must answer regarding medical care is: Should funding be increased? Should funding be tied to medical results? Should funding be reallocated away from end-of-life care and applied toward prevention and medica..
The General Manager (GM) of a car dealership is working on a three year business plan. The GM expects inflation to rise over the next three years.
Suppose output is growing at 3 percent per year and capital's and labor's shares of income are .3 and .7 respectively. If both labor and capital at 1 percent year what would the growth rate of total factor productivity have to be? What if both the la..
Use examples both numerical and explanations to make your case. Give an example of a real world situation where two or more firms in a certain industry would be better off if they came together and behaved like a monopoly.
Here are lots of differences between a market served by a monopoly and a market that is perfectly competitive. Sort the items below according to whether they are associated with a single-price monopoly or perfect competition.
Illustrate what is the economy's MPC? It's MPS. Illustrate what was the APC before the increase in disposable income.
Between 2013 and 2014 in a particular nation, the value of the consumer price index—for which the base year is 2010—rose by 9.091 percent, to a value of 120 in 2014. What was the value of the price index in 2013?
Which leads to higher interest rates, which leads to higher output? Which leads to higher inflation? Which represents a more hawkish Fed? Which represents a more dovish Fed?
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