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Which of the following is the best example of a short-run adjustment? Smith University completed negotiations to acquire a large piece of land to build its new library. Your local Wal-Mart hires two more associates. A local bakery purchases another commercial oven as part of its capacity expansion. Toyota builds a new assembly plant in Texas. University installs new dry-erase boards in its classrooms.
If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
___does not count in GDP numbers until the final product is sold. This is used to change variables from nominal to real: This gov. policy is part of the collection of policies deemed "shock absorbers." This particular policy is used for those recentl..
Estimate the deadweight loss from monopoly. Assume, in addition to the costs above, the musician on the album has to be paid. The company is considering four options.
In pure competition-marginal revenue
Should the Federal Reserve Board of Governors remain independent. Illustrate what is the strongest argument on either side
Draw a supply and demand curve, label X & Y axis and show equilibrium. Show a shift in demand and supply, and why it has occurred (non-price determinants). Describe all changes. Show in two or more graphs and use 2 examples for each - supply and dema..
Calculate price elasticity of demand for movie tickets if demand for movie tickets increases from 220 tickets to 290 tickets with the decrease in price from $12.50 a ticket to $8.50 a ticket.
Can you explain the practice of scalping tickets for major sporting events in terms of market shortages? How else might tickets be distributed? If rent controls are so counterproductive, why do cities impose them? How else might the housing problems ..
Explain how could ABC use interest rate swaps to reduce the exposure of its cost of debt to interest rate movements.
If many states can have balanced budget laws, why has it been so difficult for the federal government to pass and/or stick to attempts to balance the federal budget? How might the very existence of balanced budget laws in some states make it difficul..
Money demand shocks will not affect the output level so long as the Fed pegs interest rates. True or false? Use an IS-LM diagram to explain your answer.
What are the some of the shortcomings of real GDP from a welfare perspective? do you have any practical suggestions for revising the computation of GDP to achieve a better measure of welfare?
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