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Suppose that a firm sells $10,000 worth of shoes that it has held in inventory for several years. What happens to GDP as a result? Which of its components are affected and how?
The follow-ing ( multiplicative exponential) demand function is being used: QD = 6,280P. - 2.15A1.05N3.70 where QD = quantity demanded, in 10 oz: boxes P = price per box, in dollars A = advertising expenditures on daytime television, in dollars N = p..
Draw the indifference curve for U = 48. Label at least 2 specific points. Explain why the general method for finding the utility maximizing quantity of inputs will not work for this utility. Be specific about the missing condition on preferences that..
q. 1. what is a business organization?2. what is the most common form of business organization?3. define sole
Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. What are the total costs, revenues, and profits ..
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
Illustrate how each of the following events would shift the AS schedule and potential RGDP, thereby altering equilibrium prices and output levels in the economy. Use an aggregate supply-aggregate demand diagram in your explanation and assume that the..
What are lags in monetary policy? What causes inside and outside lags in monetary policy?
A 0.20-kg metal sphere oscillates at the end of a vertical spring.As the spring stretches from 0.13 to 0.21 m (relative to itsunstrained length), the speed of the sphere decreases from 5.3 to4.6 m/s. What is the spring constant of the spring?
You are a monopolist producing video game software and know you can segment your market into two distinct groups of consumers: kids who will pay almost any price for your software, and older consumers who are very price-sensitive. Assuming all the sa..
Chris is renting a house, and it does not have a refrigerator. A refrigerator is worth $3 every day because Chris will eat out less. Chris has a discount rate of 18%. Refrigerators usually last 5 years. How much is Chris willing to spend on a refrige..
(Economic Fluctuations ) Describe the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is long- term growth possible?
specific examples of what would affect each, and a discussion of why it is more accurate to estimate both when trying to determine a country's economic success.
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