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Suppose the economy is in long-run equilibrium, with real GDP at $16 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases the money supply by 6%.
Show an understanding of John Locke's economic theory and then provide an analysis of its ethical aspects. Make the focus be on the Ethics of the theory, and explain the reasons behind any ethical claims.
Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppo..
Assume a perfectly competitive industry. Given the demand curve QD= 30 -2P(or P = 15-(1/2)QD) and the market supply curve QS= P find producer and consumer surplus. If there is a price ceiling set $2 below the equilibrium price find producer and consu..
What are the advantages and disadvantages of a higher minimum wage from the point of view of workers with low skills? from the point of view of those with those with higher skills, who will, in any event earn more than the minimum?
Provide reasoning for why highly inflated countries tend to have weak home currencies. Identify the inflation rate of your home country and some well-known foreign country. Then identify the percentage change of your home currency with respect to tha..
Imagine you are an international monetary fund official going to a country whose export earnings are not able to pay for imports. The government has requested a loan from the IMF. In which areas would you recommend the government to cut: education, s..
1. Suppose that you are the MD of a new cement production company wishing to enter the South African cement industry. Identify three (3) barriers to entry that you face. What strategies would you use to facilitate market entry and thereafter ensur..
A manager tells his workers that they must perform their duties in the exact manner and order that he has commanded, with no exceptions. He is using
A firm has $2,000,000 in sales, a Lerner index of 0.56, and a marginal cost of $35, and competes against 900 other firms in its relevant market. What price does this firm charge its customers? By what factor does this firm mark up its price over marg..
a company makes a decision to expand its production line that requires initial investment of 100000. the company
An energy manager expects a need for a boiler that costs $150,000 in about seven years. How much money should the manager save each year to have enough money for the purchase in seven years time if the interest rate is (a) 10% and (b) 3%.
In a perfectly competitive industry, the market price is $25. A firm is currently producing $10,000 Units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20.
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