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Essay Question: Summarize Keynes’ analysis of the Great Depression and the specific actions that would correct the sustained economic downturn. What actions were taken?
Explain, using the isoquant-isocost diagram, why a rise in the rental rate of capital coupled with no change in the wage rate will lead to a rise in the price of the capital-intensive good relative to the price of the labor-intensive good.
Consider a production technology that takes three inputs: capital (K), labor (N ), and materials (M ). The production function is given by Y = AKαNβ Mγ , where α, β, γ > 0 and α + β + γ = 1. For this production function,
In your opinion, are the resources you devote to your education a form of consumption or a form of investment.
corporate profitability declined by 20 percent from 2008 to 2009. what performance percentage would you use to trigger executive bonuses for that year? why? what issues would arise with hiring and retaining the best manager?
Identify the nature of resource cost structure and the practical significance of different costs and explain the factors influencing optimum size and the significance of demand and supply relationships;
What type of market structure was the product or service in when the differentiation occurred? What is the differentiation? Describe specifically what the differentiation was and tell us what that means for rational business price and production deci..
Adam Smith favors a policy of laissez faire in managing economic activities. Why? Economics deals with the efficient use of resources? Why? Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
Suppose James has utility over wealth given by u(w) = w 1 2. Putting utility on the y-axis and wealth on the x-axis, use a graph to show why James would rather have $100 for sure instead of a gamble where he gets $20 20% of the time and $120 the rest..
Derive the equations for IS and LM curves. Find the equilibrium level of income and the equilibrium interest rate. Suppose government expenditure increases by 50%. Find the equilibrium interest rate and income.
Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price ..
Suppose that since some base year, the price index (or GDP deflator) has increased from 100 to 125. During the same time period, NOMINAL GDP has increased from $500 billion to $600 billion. What is the value of REAL GDP at the end of this period -exp..
Identify the contractionary monetary policies among those listed below.
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