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1."During a boom, when inflation is perceived to be greater problem than unemployment, the government can run a budget surplus, helping to slow down the economy," Do you agree or disagree with the statement? Explain.
2. Explain and illustrate using the graph of the labour market and the production function the effect of decrease in labour productivity on potential GDP, the quantity of labour, and the real wage rate.
3. Consider an economy that is operating at full employment. Explain and illustrate using AD/AS model the effect of a decrease in government spending on real income and the price level in the short run and in the long run. (note: clearly explain the process of adjustment from short run to long run)
National income is initially at its equilibrium level when desired investment falls and a fall in national income, but not by as much as the fall in desired investment
The present spot exchange rate is $1.55/£ and the 3M forward rate is $1.50/£. On the basis of your analysis of the exchange rate.
Higher autonomous investment in a small economy will lead to higher investment (I), higher value of domestic currency (e) and lower net export (NX).
Grapg a series of isoquants for the production function q=10, 15,20. Plot at least 5 points for each isoquant by assuring value for q and then a value for L and solving for the remaining value of K to get the needed level of q.
The marginal damages to Community A are 1q. The marginal damages to community B are 2q.Now, two other factories start producing in the area and benefit from polluting, too. For each, the marginal benefit. two other factories start producing in the ar..
Explain any other differences among selling the mobility product in the United States and selling it in your three targeted countries.
You have just won a lottery! You will receive $50,000 a year beginning one year from now for twenty years. If your required rate of return is 10 percent,
If a credit card company charges 3% each month on the unpaid balance, compounded monthly, what is the effective annual rate?
Attila (A) and Francis (F), live on Coconut Island and face the problem of determining the amount of military defense they need to repel a potential invasion from neighboring islanders. Defense is a jointly consumed pure public good. They agree to..
Explain how do the types of economics systems capitalism , socialism, and communism fall under : market , tradition, and command.
sam musso is planning to retire in 20 years. he can deposit money at 8% compounded quarterly. what deposit must he make at the end of each quarter until he retires so that he can make a withdrawal of $45,000 semiannually over five years after his ..
Make a schedule showing total product, average product of labor, and marginal product of labor using a range of labor inputs
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