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If actual inflation is higher than expected inflation, the
A. actual real wage is less than the expected real wage: unemployment rises.
B. actual real wage is greater than the expected real wage: unemployment rises.
C. actual real wage is less than the expected real wage: unemployment falls.
D. actual real wage is greater than the expected real wage: unemployment falls.
When the net annual cash flows are EQUAL, the cash payback period is computed by dividing the cost of the capital investment by the: If a payback period for a project is greater than its exected useful life, the
Why does the government have a bad reputation of being inefficient? And if it is inefficient in some areas and not others, does that mean they should privatize the inefficient responsibilities?
Sally Rand owns a ceiling fan company. She sells 1,000 ceiling fans at $50 each. Each fan costs her $20. She uses her own money to buy the fans; she withdraws the money from her savings account where it earns 5 percent interest. Before going into the..
Suppose the government increases purchases in an economy with a recessionary gap. How would that policy affect bond prices, interest rates, investment, net exports, real GDP, and the price level? Show your results graphically
When is a producer's self-interest aligned with the social interest? This is one of the major questions addressed by economic theory. The previous chapter explored the behavior of profit – hungry producers in a perfectly competitive market. Suppose s..
q.the federal government occasionally goes through the process of reauthorizing and modifying the state childrens
In the following examples, name the factor that affects demand and describe it's impact on your demand for a new cell phone.
Suppose that demand is given by the equation: Using the midpoint formula, calculate the elasticity for demand when the price changes from $49 to $51. Would you classify the elasticity you calculated as elastic, inelastic, or unit elastic?
As per to Global Insight, a Massachusetts economics consultancy, elucidate what will happen if oil prices remain in the range of $65 to $70 per barrel for a couple of more months.
Income from recycling plastics is expected to be $2000 in Year 1 and increase by $500 a year for each of the next 5 years if you buy a sorting machine. Draw a cash flow diagram showing your expected income in years 1, 2, 3, 4, 5, and 6 assuming you b..
Examine perfect competition in the value-menu fast-food restaurant business. Why does this type of fast-food restaurant tend to display characteristics of perfect competition? When is losing money on Mondays still a good business decision?
Find out equilibrium price and output for the following market condition. Discuss a change in demand resulted in a change in the market price. Provide an example of how a change in supply resulted in a change in the market price. How does the price m..
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