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A prospective change in government purchases. Suppose that people learn in the current year that government purchase will increase in some future year. Current government purchases do not change.
a. What happens in the current year to real GDP,Y; Consumption; and investment, I?
b. Can you think of some real world cases to which this question applies?
The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy Qs = 4.171P - 110. Illustrate how much money would a typical consumer save each month as a result of the proposed le..
Consider a two-firm industry. Firm 1 (the incumbent) chooses a level of output q1. Firm 2 (the potential entrant) observes q1 and then chooses its level of output q2. Find the subgame perfect equilibrium levels of q1 and q2 keeping in mind that firm ..
As the number of explanatory variables in a regression increases, the R of the regression
q.your lecturer used to work at a nationwide chain of retail swimming pool stores which pays its sales force a bonus
Suppose Leonard, Nixon, & Shull Corporation's projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the value of its operations?
The following graph shows the economy in long-run equilibrium at the expected price level of 120 and the natural rate of output of $600 billion. Suppose firms become pessimistic about future business conditions and cut back on investment spending.
What is the key problem with measuring marginal q? Is there an alternative measurement that can be used instead? Is this alternative measurement likely to be an accurate proxy for marginal q?
q.let the inverse demand curve be d q 56 - 2q q q1 q2. costs for each firm are a constant variable cost of 2 a unit
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes. How many servings of grapes can the school afford each d..
Suppose that, over a 564 day period, Mike Inc.'s stock price experienced (negative) Log Returns of -14%. Convert the Log Return into a Standard Return. What would the annualized Standard Return be?
In April, eggs cost $2 per dozen, wine costs $1 per bottle, your income is $120, and you buy 50 dozen eggs. In May, eggs cost 50 cents per dozen, wine still costs $1 per bottle, and your income is $60. Is it possible to tell in which month you are ha..
What type of cost has NO impact on determining the profit-maximizing sales quantity? To earn the greatest possible profit, a firm must: In which situation might a company NOT want to maximize profit?
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