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1. Assume that the unemployment rate is 7% and GDP is $4,000 billion. What is a rough estimate of the potential GDP if the NAIRU is 5%?
2. Assume that potential GDP is growing at 3% annually. What will potential GDP be in 2 years?
3. How fast will actual GDP have to grow to reach potential GDP in 2 years?
Do changes in fixed cost alter the profit maximizing level of output for a profit maximizing firm in the short-run? Why or why not? Under what conditions is it more profitable for a firm to operate at a loss than to shut down production temporarily?
When computing the p-value for a two-tailed hypothesis test, we need to
Suppose that a manufacturer is a monopolist in selling some product to a number of competitive retailers at wholesale price w. The manufacturer has marginal cost of $10 per unit. Each retailer pays w to the manufacturer and charges p for each unit it..
q1. use the following general linear demand relationsqd 100 - 5p 0.004m - 5 pr where p is the price of good x m is
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the knife’s edge model?
Illustrate what is the GDP of George's also John's island in terms of clamshells.
Suppose the price level and value of the U.S. dollar in year one are 1 and $1, respectively. If the price level rises to 1.20 in year two, what is the new value of the dollar?
If Englad can produce either 15 units of corn or 30 sweaters in one unit of labor and Portugal can produce 10 units of corn and 5 sweater in one unit of labor as well, explain how would each nation benefit (numerically) from trade.
What are synonyms for increasing returns to scale? How did the one of the authors, Paul Krugman, relate these to international trade?
The Coase Theorem suggests that, under some conditions, private bargaining will resolve the problem of negative externalities. Describe the set of conditions that must be in place for this to be true (at least three). What are the implications of thi..
Fully explain your answer in a way that shows your understanding of monopolies. Your paper should be two to three double-spaced pages and formatted according to APA style as outlined in the Ashford Writing Center.
Does aggregate accounting enable us to measure also analyze how much a nation is producing also consuming.
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