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Q1. 1. Given that in 1995 real GDP was $6,742.1 and nominal GDP was $7,265.4, what is the value of the GDP deflator?
2. For the Keynesian model, explain the reasons why the aggregate demand curve is downward sloping?
Q2. What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?What if firms expected future returns to be very high?
Consider decision making process used by consumers as they budget their money to maximize use of their resources.
Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy.
Study by the National Park Service revealed that 50 percent of vacationers going to the Rocky Mountain region visited Yellowstone Park, 40 percent visit the Tetons, and 35 percent visit both.
What effect would a 30 percent reduction in the number of new homes completed have on Mapco's sale.
Nevertheless your total unit sales have increased over this period. Assuming rational buyers and no deceptive advertising, how can you account for this.
Why does Caterpillar as well as your parents have different opinions about the value of the dollar.
Coke could have followed the price per unit down, but it didn't. Total soft drink demand increased, and Pepsi took a larger share of the demand.
One of the three ADM executives was actually an informant who tipped off the Feds about this conspiracy. Which executive was he. Why did he rat out his co-workers.
What can you say about the level of the real interest rate if people instead are risk averse.
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.
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