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Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage ,employment ,output ,real interest rate,consumption ,investment and price level
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1. a reduction in the effective tax rate on capital increases desired investment
2. increased usage of automatic teller machines reduce the need for money
A monopoly with a constant marginal cost m has a profit maximizing price of p1. It faces a constant elasticity demand curve with elasticity e. After the government applies a specific tax of $1, its price is p2. What is the price change p2-p1 in terms..
The perfectly competitive DVD copying industry is composed of many firms who can copy five DVDs per day at an average cost of $10 per DVD. Each firm must also pay a royalty to film studios, and the per-film royalty rate (r) is an increasing functions..
Let the inverse demand curve be p(q) = a − bq. Suppose there are two firms, with constant marginal cost equal to C. what are their equilibrium strategies and what is the equilibrium outcome?
What is the discounted present value of a prize that gives you two installments of 1000 dollars (each), if these payments are made in five and six years from now, and the interest rate is 0.05?
In Federalist #78, Hamilton answers potential objections to the national court system in the U.S. Constitution. Critics offer three objections to the proposed court system, what are those three objections
Evaluate opportunity costs in the business decision-making process. Analyze whether each of the following is primarily a microeconomic or a macroeconomic issue Setting the price for a cup of coffee.
You are a restaurant owner and you are concerned with workplace deviance among your staff. Many employees come to work late or don’t show up at all. Theft of inventory and tips not belonging to them has been an issue in the past. Using psychological ..
In an effort to reduce education expenditures, Delware shuts down two of the five colleges that train nurses. Using the traditional supply and demand model, discuss the effects of the budget cut on three markets: the markets for nurse schooling (tuit..
q.a manufacturer of computer workstations gathered average monthly sales figures from its 56 branch offices and
What features of the U.S. financial system facilitated the Great Recession in 2007-2008? Could the crisis have been avoided? If so, how what institutional and systemic changes would have been required to prevent the problems that occurred? What else ..
Explicate your rationale. Once more, with the similar organization in mind, converse the most effective way to maintain also extend a competitive benefit.
An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. What is the amount of the ..
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