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In a 1990 article assessing the 1980's, Time reported that: "The good news is that U.S. gross national product doubled during the 1980s, from $2.7 trillion to $5.3 trillion." The GNP number they refer to is nominal GNP. Why might this news not be as good as they suggest?
Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250, and their desire to purchase does not vary with time. Ignore the time value of money a..
Draw a graph of the UK labour market that shows the demand for labour, the supply of labour, and the real wage rate in 1973 and 2003. Draw a graph of the UK production function in 1973 and 2003. Make sure your graph shows potential GDP in both year..
Labor demand for low skilled workers inthe U.S. is w=40-.15L where L is the number of workers (inmillions) and w is the hourly wage. There are 180 million domesticU.S. low-skilled workers who supply labor inelastically.
Illustrate what would happen to the demand for iPhones if consumer income rises by 10%. Be specific. Are iPhones a normal or an inferior good.
Illustrate what is the nature of this trouble. How did this trouble come about? In what ways will this trouble impact the US economy.
Suppose a firm has a constant marginal cost of $10. The current price of the product is $25, and at that price, it is estimated that the price elasticity of demand is -3.0.
Compare and contrast the behaviour of the indicators for the United States with those for the Australian economy and which industry experienced the highest rate of growth in the twelve months March quarter 2013 - March quarter 2014?
If the costs of one of the goods rise by 5 percent, Illustrate what will happen to the demand for the other product, holding constant the effects of all other factors?
Interest Rates and ATM Trips.Carlos, who lives in a country where interest rates are very high, goes to an ATM every day to get $10 of spending money
China pegs the yuan to the United States dollar at 8.3 yuan each dollar. Assume that this is above the equilibrium level of dollar in foreign exchange market.
If the Fed changes the money provide to match the change in money demand, what will happen to the interest rate over time.
Compute the expected stock price for each firm using the constant growth dividend discount model.
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