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A reduction in income will cause: a reduction in the supply of central bank money a reduction in the demand for currency and reserves an increase in the demand for reserves none of the above If nominal GDP rises from $100 billion to $120 billion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is: -10.00% 10.00% 1.10% 9.09%
For the next several questions, refer to the table regarding Magazines and eBooks. Fill out the Marginal Utility column for magazines. What is the marginal utility of the 4th magazine? Fill out the Marginal Utility column for eBooks. What is the marg..
During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the “price gouging” and “windfall” profits of the major oil companies. In the 1970s Congress imposed an “excess profits tax” on these companies.
If the nominal GDP is $559 billion in the base year, and it rises to 577 in year 1, and 605 in year 2, what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2?
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Identify which of the following statements is always true for a natural monopoly as the number of units produced (output) increases.
Suppose that a biotech firm makes di- agnostic tests and has a fixed-proportions production function in which one unit of output (diagnostic test) is produced using one worker and two units of capital (machines). If the firm has an extra worker and n..
Suppose P = 20 ? 2Q is the market demand function for a local monopoly. The marginal cost is 2Q. The firm currently uses a standard pricing strategy. Which of the following will allow the firm to enhance the profits?
A firm produces an output y using labor and capital, whose quantities are denoted respectively by x_L and x_K. Suppose this firm's production function is given by
The output effect of an increase in the wage comes about because higher wages:
Suppose you are an industrialist begninning a biotechnology company. If your research is successful, technology can be sold for $30 million. If your research is unsuccessful, it will be worth nothing.
describe the market structure of perfect competition in terms of number of producers, control over price by firms in this market, type of product in terms of differentiation, barriers to entry into this market, and whether economic profit can be..
The model of the economy
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