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In retrospect, it is clear that the U.S. economy was in a precarious position in 2006. Trillions of dollars had been borrowed to buy housing on the expectation that home prices would keep on rising. In 2006 the house prices fell; what happened in relation to this week’s chapter?
Calculate MPC, MPS and the Multiplier if consumption expenditure increases by $4,250 as a result of increase in income from $40,000 to $45,000.
Assume a (perfectly competitive) firm has production technology given by f(L, K) = √ L + √ K. Assume pK = 1 = pL and compute its (long-run) supply schedule. Where in the analysis do you invoke the assumption of perfect competition?
Illustrate what risks do you face. Upon inquiry at your bank, you find that the forward price for a September contract to buy dollars is 10SKr per dollar. How might you hedge your exchange-rate risk for the first year.
q1. cost mart reduces the cost of a 42 inch tv plasma from 1200 to 1000. as a result sales of tv plasmas increased from
The U.S. government strongly encouraged unions to be formed in the early 1940s because they held the view that unions would help to
Adam Smith favours 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?
Key concepts to include in your paper--data trends on unemployment, inflation, GDP growth, expansionary fiscal policy tools, FOMC, easy money policy tools and other terms from this class.
Which one of the following statements is FALSE about a market characterized by the market structure we call duopoly (that is an oligopoly with only 2 firms) under Cournot competition?
Discuss the pros and cons of monopoly structures. Cite the forces that influence the supply of labor. Explain why the labor demand curve slopes down word
John Richards, CEO of Richards Construction builds custom high end garages for car collectors in a booming community in California. Although sales have slowed because of a national recession, it now looks as if the recession is about to end. Suppose ..
Economists tend to favor revealed preference methods of valuing non-marketed goods like environmental quality and natural resources. What are two reasons why revealed preference methods may lead to poor estimates of these values?
In 2014 in a country with a labor force of 100 million, 6 million people were unemployed. In 2014 the number of unemployed people increased to 7.750 million. Assuming that the labor force did not increase in 2014, use the Okun’s law and formula predi..
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