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Technical
Suppose that actual output is $120 billion and potential (full-employment) output is $156 billion. What is an output gap in this hypothetical economy? Based on your estimate of the output gap, would you expect the unemployment level to be higher or lower than usual?
Increasing customer satisfaction typically results in increased purchase behavior. For many products, there is more than one measure of customer satisfaction. In many of these instances, purchase behavior can increase dramatically with an increase..
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 20 - 2P and C(Q) = 104 - 14Q + Q^2. a. Find the inverse demand function for your firm's product. b. Determine the profit-maximizing pric..
Suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. Suppose further that people want to hold 8 percent of their deposits in the form of cash. Then if the fed wants the money supply to be $6,228 billion
Analyze the message delivered by each of your visual media items. Foreachitem, respond to the following questions in complete sentences. Cite evidence from the resource and the lesson to justify your responses.
The market demand curve for an industry with two identical firms is P =102-2Q, where Q = Q1+ Q2.The constant per unit marginal cost is 2 for each firm. i) If the firms form a cartel to maximize industry profit What is the industry level of output
After several months of price hikes, the price of butter reached the price observed before demand decreased. A blogger suggested that the rising price of butter was evidence of a conspiracy on the part of butter producers.
Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..
Suppose the market for semiconductors in the U.S. is characterized by: Qd = 200 – 40P [Demand] Qs = 40+ 40P [Supply] The market for semiconductors in the rest of the world is characterized by: Qd = 160 – 40P [Demand] Qs = 80 + 40P [Supply] Suppose th..
A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are: MPL = 20 MPM = 4 Is the firm m..
assume that nominal income is 35000 and the price index is 1.20 in year 1. in year 2 nominal income rises to 38000 and
The "graying of America" will substantially increase the fraction of the population that is retired in the decades to come. To illustrate the implications for U.S. living standards, suppose that over the 49 years following 2009 the share of the po..
Earl obtained a loan for 22000 dollars. He will pay it back in 17 months with an interest rate of 8 yearly compunded monthly. Each payment will be $200 larger than the previous payment. Calculate the amount of the last payment.
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