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Suppose that government wishes to affect the level of aggregate demand in the economy. All of the following, except one, are consistent policy measures. Which is the exception?
A. A tax increase and an increase in money supply
B. A tax reduction and an increase in money supply
C. An increase in government spending and an increase in money supply
D. A decrease in government spending and a decrease in money supply.
Using the Lagrangean multiplier approach calculate the optimal (i.e., service maximizing) combination of medical and social staff. Determine the optimal amount of service provided by BF.
Suppose the production function in an economy is Y = K^0.5L^0.5, where K is the amount of capital and L is the amount of labor. The economy begins with 64 units of capital and 16 units of labor. How much output does the economy produce?
Micro media offer computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micro media is currently planning a two-day seminar ..
Under oligopolistic market conditions, a. the pricing actions of any one firm have no significant effect on the others b. the pricing actions of any one firm have a significant effect on the others c. no firm can have any control over its output pric..
What is the present value of the following series of prospective payments?
Beat To A Pulp, Inc. sells paper and uses paper machines and labor in production. It pays $800 per employee and $400 per paper machine. Its marginal product of labor (MPL) is 1600 reams of paper per worker and marginal product of capital (MPK) is 200..
Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the plant. Producing an additional ton of steel imposes a constant externa..
In what ways has the U.S. system been affected (positively and negatively) by these regulations?
A first mover is dominating a market, with revenues of $40 million annually. The average total cost for the firm is $20 million, of which $19 million is fixed. How can the first mover keep others from entering the market?
At what output level would the monopolist produce? (C) At what output level would a perfectly competitive firm produce?
How much do you expect to get paid for a year in the second investment to be indifferent between two investment choices? (The two investments have the same Expected Profit) What is the Risk Premium in the second choices?
Sources of inputs into the microeconomics in context model include:
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