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Market Effect
Suppose a freeze in florida wipes out 20% of the orange crop. How will this affect the equilibrium price and quantity of banana? Assume that the orange and banana are substitute to each other.
When borrowing money, what is the better gauge of our true cost of borrowing - the nominal rate of interest or the real rate of interest? Please explain.
Calculating elasticity: Draw a set of coordinate axes on a piece of graph paper. Label horizontal axixs from 0-50 units and vertical axis from $0- $20 per unit. Draw a demand curve that intersects the vertical axis at $10 and the horizontal axis a..
You can lease the similar piece of equipment, delivered and installed, for an all-in cost of $65,000 per year, for three years, payable at the beginning of each year.
Illustrate why would you be reluctant to advise that your country increases its money supply.
Assume the marketplace for milk. For each of the following events, state whether it affects supply or demand (or both, or neither), which direction supply/demand shifts.
Provide brief but theoretically sound explanation for each of the following.
Having a 100% crime free society is not likely to be attainable. Why? Do you agree or disagree? Make your case, whether you agree or disagree, by using the tools of economics of crime prevention.
Before September 1992, the lira or DM exchange rate could fluctuate through up to 2.25% up or down. If central banks ensured that the lira or DM exchange rate band was set in this way and could not be changes,
Illustrate fiscal policies also monetary policies which would be appropriate at this time.
Suppose in a closed economy, government spending is $60, business investments are $120 and consumers' spending is given as C = 120 + 0.85Y. What is the equilibrium level of output?
During March 2001 and March 2002, measured RGDP in the economy actually increased by about 2.5 percent, even though total employment in terms of hours worked declined through 1.8 percent and the unemployment rate increased sharply from 4.3 percent to..
Analyze the contribution that automatic stabilizers play in making a stable economy. Provide some examples of the automatic stabilizers and use them to illustrate their significance.
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