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In the Solow model,
(a) Suppose there is a permanent increase in the price of oil (i.e. energy prices). If prior to the price increase the economy was in steady state, how should it a§ect output, the capital stock, savings and consumption in the long run?
(b) Suppose the price increase causes people to take better care of their machinery (to keep total running costs from rising too much) how and why might this reduce the impact of the oil price change?
Suppose also that ham and cheese are the only goods that this person buys and that bread is free.
Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.
Another alternative donation scenario is to deposit $25,000 now in a savings account with a guaranteed rate of return of 5% per year compounded monthly. Each month your company will withdraw $1000 from this account and donate it to Children's Hosp..
Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 − 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is..
Illustrate what greens fee should the operator set on weekday also Elucidate how many rounds will be played n the weekends.
In the _____, households receive goods and services and pay firms for them
Assume that a piece of equipment has a replacement cost of $10,000 and an 8-year life. Calculate its annualized cost at an interest rate of 15%. Show your calculations.
Aggregate demand and aggregate demand curve. The three reasons that explain the downward slope nature of the AD curve. Recessionary and inflationary gaps: please use AD/AS curves to show. What is the effect of sticky wages in the economy? What is eco..
Review the biographies of each of the seven members of the Board of Governors.
If the growth rate of the money supply is 6?%, velocity is? constant and real GDP grows at 4?% per year on? average, then the inflation rate will be what %? If the growth rate of the money supply increases to 18?%, velocity is constant and real GDP g..
Was there a UFW-Almaden contract in effect when the Paicenes vineyard was leased by Heublein to Glen Ellen
Suppose, Worker 1 has a reservation price of 41 cents; worker 2s reservation price is 42 cents; worker 3s reservation price is 43 cents, and so on. There are 150 jobs in firms without air purification systems, and this number is fixed. Thus, the dema..
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