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1. "An increase in the price of a good that is imported into the US – holding all other prices and quantities Öxed - will tend to increase the GDP deáator in the US"
2. "In an economy with only two goods, the choice of the base year (b) will not affect the growth rate of real GDP with base year b, as long as the relative price between the goods (that is, the ratio of the price of one good to the price of the other) is constant over time"
3. "An increase in the stock of capital of an economy tends to increase the real wage"
4. "The shorter the duration of a given increase in the real wage, the stronger the income effect is"
5. "Skill-biased technical change, through its effect on labor supply of skilled and unskilled workers, can generate an increase in wage inequality"
Elucidate what have noticed is that there is a high demand for Louis Vuitton bags even though they are so expensive.
How do you think the check tax affected the currency-deposit ratio and use the model of the money supply under fractional reserve banking to discuss how this tax affected the money supply.
Does it mean that the economy is starting to gather momentum for a faster growth rate? Explain. Hint: What obstacles remain for the economy to start growing at a faster rate?
A perfect competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q^2-What is the lowest price at which the firm can break even?
DeBeers Consolidated Mines markets about: 45 percent of the world's rough-cut diamonds. 33 percent of the world's rough-cut diamonds. 80 percent of the world's rough-cut diamonds. 55 percent of the world's rough-cut diamonds.
What feature in this example leads to the result that you don't need to know the amount of taxes collected by the government to find the equilibrium?
In 2003, conservation groups paid western cattlemen to move their herds away from wild buffalo herds so that the buffalo would have more feed and not have to compete with the cattle. What has this action to do with regulation and the Coase Theorem
Over the past 3-years, as the result of reducing values for digital cameras, the price of developing traditional 35mm film has increased 5 percent yearly.
Suppose we start at a position where we are at full employment. Explain what effect a contractiory fiscal policy would have on the price level and real GDP starting from full employment equilibrium. What would the effect be if we had and expansionary..
Using Keynesian model and Classical model, analyzed the effect of balanced budget (when the government increases the government expenditure and tax by the same amount not to affect the government deficit) on output (Y), interest rate (r) and price ..
Assume the price of product B, increases from $1 to $1.50. As a result, the quantity demanded of product "A increases from 500 to 600 a month. This indicates that the cross-price elasticity and relationship between the two products.
Microsoft Corp want to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger. Analyze how the different forces will come together to create a convergence..
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