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Q1. Explain why each of the following statements is True, False, or Uncertain according to economic principles.Suppose the economy is currently operating with a recessionary gap. If the government does nothing with regard to discretionary policy changes, national income will never recover to its potential level.
Q2. In 1947, real GDP (2005 base) in the US was 1852.7b, the GDP deflator was 13.753, and M2 was $146b. In 2012, real GDP was 13591.1b, the GDP deflator was 115.378, and M2 was $10003.4b. How well does the quantity theory with constant velocity accurately predict the annual inflation rate over this period? What would the annual percentage change in velocity have to be on average for the quantity theory to hold?
To one side maximizing profits evaluate the factors which managers must consider when making judgment to outsource or integrate forwards/backwards considering which factor would be mainly significant for decision-making.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.
Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.
What reliance performance would be measured efficient. Elucidate reliance behavior which would be considered excessive.
he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
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