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A) nGDP is $5 trillion in Yr 1 and $5.4 trillion one year later. What is the GDP growth rate?
B) If rGDP in Yr 1 was also $5 trillion what can you say about Yr1?
C) If rGDP grew 5% between Yr. 1 and Yr. 2 what did GDP prices do?
(Hint: use part A. If you know GDP growth with both output and prices and now you now output by itself, what must prices have done?).
Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and is willing to trade 2 fish for every coconut that you are willing to give him. What is the slope of budget line from trading with Frid..
Suppose that Frank is considering giving Mike eight paper back books in exchange for 2 CDs. Explain the conditions under which this trade would be mutually beneficial. Also explain the conditions under which Frank and Mike won't make the trade.
What laws or regulations may affect your new career? Will these affect your ability to work in certain areas, etc.? What opportunities & threats could potential changes in the government represent?
Illustrate what is most X that can be produced? most Y. Illustrate what is formula for opportunity cost of X in terms of Y in this economy.
The wage in Mexico is $5. The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
If buyers pay $8 per unit to the intermediary but sellers offer to rebate part of that expense to buyers.
When Ajax co. Produced 3 units of output per week, its total fixed cost was $100 and total variable cost was $45. When output increased to 4 units per week, total fixed cost remained at $100 and total variable cost increased to $65.
Assuming a bank only keeps enough of its reserves to meet its reserve requirement, how much money is created when a bank receives a deposit from an individual of $80,000 and there is a 10% reserve requirement.
Donna buys goods X and Y. She can just afford the bundle X = 6 and Y = 11. She can also afford X = 12 and Y= 8. Each of these bundles exhausts her income. Draw Donna’s budget line. What is the ratio of the price of x to the price of y?
For each of the following events, explain the short run and long effects on output and the price level, assuming polycimakers take no action.
In essence, do you agree with each statement? Explain why or why not? The best test of the performance of two different regression equations is their respective values of the coefficient of determinations.
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