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Angelina can fix a meal in 1 hour,and her opportunity cost of one hour is $50.
Brad can fix the same kind of meal in 2hours, and his opportunity cost of one hour is $20. Will both Angelina and Brad be better off if Brad fixes meals for her and she pays him $45 per meal? Explain
such as making charitable contributions or civic expenditures (MU). Can you set up the problem and derive the optimization conditions if the owner-manager wishes to obtain a specific level of utility at the lowest possible cost.
An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there.
Compute the cross price elasticity with respect to chicken price, the advertising elasticity and the income elasticity using the information listed
As an economy increase and productivity grow, real wages tend to rise - people get richer on aggregate. Real wage growth implies that people are able to buy more of the services that are in basket of goods.
What average annual inflation rate would a monetarist expect if the Fed maintained a growth rate of M2 = 10% per year for a three year period?
We are in the midst of a slow growing economy in the aftermath of a severe recession. During the economic downturn many businesses laid off workers very quickly once they forecast their sales were dropping. What is the economic reasons behind cutt..
Assume you received a four percent increase in your nominal salary.
Compute the annual lease payments. Remember, the payments are to be considered at the beginning of each year - annuity due.
If the product is only a small part of your budget, it does not make that much difference if the price increases a little. But if it is a large part of your budget, like gasoline, it can make a big difference in how we respond! Elaborate.
Suppose that rich countries surprisingly commit to much higher official aid, to be maintained for several decades. What would be the effect of such aid on?
Illustrate ahat are the general equilibrium values of the real interest rate, price level, consumption, and investment.
A bank is offering $20,000 6-month CD's for $19,500. What is the nominal annual interest rate? What is the effective annual interest rate? please give both the answers in %.
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