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From a long-run production function (e.g., Q = 4K + 2L or Q = K0.5L0.5), which of the following may be determined? i. the quantity of output resulting from all combinations of inputs (e.g., capital and labor) ii. the combination of inputs (e.g., capital and labor) that maximizes output iii. the different combinations of inputs (e.g., capital and labor) that yield the same quantity of output iv. the cost to produce a given quantity of output i ii iii iv i and ii i and iii i, ii, and iii i, ii, iii, and iv
Suppose that the government wants to stimulate GDP using fiscal policy, for example by raising G from 2,500 to 3,000. How does this affect your IS and LM curves? Suppose that
Ambrosia, a small country in the Mediterranean region, has an agriculture-based economy. In recent years, a decline in global trade barriers has led to a massive increase in a
You have just opened a new Italian restaurant in your hometown where there are three other Italian restaurants. Your restaurant is doing a brisk business and you attribute you
In the long run, what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits? The demand curve will shift to the left and bec
In the long run, if price is less than average cost. the market must be in long-run equilibrium. there is profit incentive for firms to enter the market. there is no incentive
Which of the following is not a characteristic of a monopolistically competitive market structure? There are low barriers to entry of new firms. All sellers sell products that
Consider the following version of our one period macro model. The representative household’s preferences are defined over consumption C and labor N. Their preferences are give
Skateboards must be produced with exactly 4 wheels and 1 board for each skateboard. (Suppose that no assembly is required, so labor is not an input.) Let Q be the number of sk
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