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Describe the procedure necessary to solve for an equilibrium analytically. Show how this translates in an economy with an Edgeworth box. If you have a demand curve as part of your solution method you should explain how it is derived from consumer and/or firm maximization.
Based on surveys conducted by the BLS, the CPI basket assigns a weight of approximately 15% to transportation spending. Suppose you walk to your workplace every day and you do not use any other means of transportation. With everything else the same, ..
Suppose a central bank has increased its nation's nominal money supply considerably for several years in a row, but without any increase in inflation. Over the same time, suppose its economy has not grown. Given this information, explain why this mon..
If the USA experiences an economic boom relative to its trading partners, then: If China , a key trading partner of the USA, expericnes a recession, then. Suppose the Government of the USA decided to increases it's spending over next one year. How wi..
There are at least two different possible approaches to the problem of building a model of the costs of production of electric power. What functional form would you recommend for estimating Model I? Be sure to write out a specific equation. What func..
All economic systems (capitalist, communist, or any other) face similar economic problems. Which of the following questions would NOT be faced by all economies?
A new piece of machinery, when placed in service is estimated to cost $225,000. It is expected to produce revenue of $75,000 and operating and maintenance expenses are expected to be $9,000 per year. The useful life of the equipment is 5 years and it..
Assume that the current demand and supply curves for widgets can be expressed as: calculate point price elasticity of demand at a price of 10 dollars. calculate arc price elasticity of demand between a price of $6 and $12.
Suppose an economy has four sectors, Agriculture (A), Energy (E), Manufacturing (M), and Transportation (T). Sector A sells 10% of its output to E and 25% to M and retains the rest. Construct the exchange table for this economy. [M] Find a set of equ..
If a firm is very dependent on firm-specific human capital then is should: a)develop programs for sending employees to the local university b) create a extensive internal labor system for career advancement c) offer compensating differentials for har..
Abc inc. pays dividends annually. the expected dividend payment in year five is $2. the growth rate, which is currently 10%, is expected to decline linearly over ten years, between year 5 and year 15, to a stable rate of 5% thereafter. the required r..
Suppose that and the goal of the policymakers is to decrease C and increase I without changing . a. Can the policymakers achieve these objectives by using only fiscal policy? Explain. b. What combination of monetary and fiscal policies are needed to ..
Illustrate what would be the price also output. Illustrate what would be the firm's profit or loss.
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