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Consider a two-country (home and foreign) two-good (wheat and cloth) world. Let MPLw and MPLc be 4 and 2, respectively. Let L=25. Suppose that the number of workers doubles in Home. What happens to the Home PPF and what happens to the no-trade relative price of wheat?
Assume a monopolist faces the market demand function P=a-bQ. Its marginal cost is given by MC = c+ eQ. Suppose that a > c and 2b + e > O.
Elasticity shows the responsiveness of supply or demand to changes in price. What are the factors exerting influence on price elasticities of supply and demand
sing Excel, make a line graph for each exchange rate. Plot the exchange rate on the y-axis and days on the x-axis. Be sure to include axis-labels, grids, title and adjust the axes scale accordingly. Move each graph to its own tab
Pretend a company issues a zero-coupon bond that pays $3,000 in a year's time. The company issues a low-risk bond that competes with saving accounts offered by banks. Assume banks offer the interest rate of 4%. Price of this bond is equal to...?
Assume that I am selling cans of beer to people on a beach. Since I am concerned about my income, I decide to sell beer in the following way.
1. consider a macroeconomy was initially at equilibrium level.nbsp using the short run aggregate demand and aggregate
In Bayonne, New Jersey, there is a large beauty salon and a number of smaller ones. The total demand function for hair styling per day is Q=180-10P, where P is in dollars.
Identify at least four (4) key points of a relevant economic article from either the Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8.
Give a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.
The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy.
Assume an economy in long and short run equilibrium in the Aggregate Deamnd/Aggregate Supply model. There is a sudden drop in consumer confidence in the solvency of pension funds. Explain, with support from a graph, how this is shown in the AD/AS ..
Elucidate how an attempt by the government to lower inflation could cause unemployment.
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