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Suppose that a certain country has an MPC of 0.9 and a real GDP of $400 billion. If its investment spending decreases by $4 billion, what will be its new level of real GDP?
The production function for Hogwarts Remover, an anti-magic potion, has the form Q = K 0.5L 0.5 , where Q is in bottles per period and K and L are in machine-days and labour-days per period, respectively. a. Graph the unit isoquant (Q = 1) and the is..
If a perfectly competitive firm is a price taker, then
As a general rule, is it safe to assume that a lower interest rate will encourage significantly lower financial savings for all individuals? Explain.
Economic data is a very broad concept. It can include discrete preference relation data-sets as well as extensive time series data. But it is important that theories are tested against data, and the earlier this happens in the development of an econo..
A firm has $1,900,000 in sales, a Lerner index of 0.55, and a marginal cost of $50, and competes against 800 other firms in its relevant market. What price does this firm charge its customers? By what factor does this firm mark up its price over marg..
Assume that the firms form a cartel to maximize total industry profits. Determine the optimum output as well as selling cost for each firm.
Illustrate what is the basic objective of monetary policy. What are the major strengths of monetary policy.
Illustrate what is the distinction between marginal revenue product also marginal revenue. How does the government of Canada redistribute income.
A deposit of $ 40,000 is put in a savings account at an interest rate of 3%. The interest is compounded quarterly, Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. What is the maximum annua..
Only incremental cash flows are relevant in project analysis, the proper incremental cash flows are the reported accounting profits, and thus reported accounting income should be used as the basis for investor and managerial decisions.
explain how changes in equilibrium occur as a result of changes in fiscal and monetary policy.
List the service that most likely to have network effects within 5 years. Google Fiber (providing GBit Internet access to homes) Purchase of Nest (maker of home thermostats and smoke detectors) Purchase of several robotics companies (Boston Dynamics,..
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