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A produced 7 cups of coffee($4 a cup) and 4 cups of decaf ($3 a cap) during 2013, During 2014 , A produced 9 cups of coffee($5 a cup) and 5 cups of decaf( $3 a cup)
Calculate the CPI for 2014 assuming 2013 is the base year.
In the early1980’s, to combat the recessionary forces, President Ron Reagan used expansionary fiscal policy by lowering (marginal) tax rates to combat the recession. Concurrently, Paul Volcker, Chairman of the Federal Reserve Board of Governors, redu..
Suppose you work in a financial institution, how you would advise your clients.
Firm x develops a new product and gets a head start in its production. Other firms try to produce a similar product but discovers they have higher average total cost than the existing firm. This situation illustrates what
the first automobiles were built in 1901, they were manufactured by skilled workers using hand tools. Later, in 1913, Henry Ford introduced the moving assembly line, which lowered costs and speeded production.
Suppose that marginal propensity to save is equal to 0.25, and the government increases its spending by $200 billion. This new increase in spending is financed by a fresh increase in taxes equal to $200 billion. As a result of this, GDP will:
On January 1 2015, your savings account will be worth $259,000. Every month thereafter, you make a cash contribution of $767 to the account. If the fund is expected to be worth $410,000 on January 1, 2020 what will the annual interest rate of interes..
Suppose w=$100. There are two commodities, electricity and food. Each unit of food costs $1. The first 20 kwh of electricity cost $1 per kwh but the price of each incremental unit of electricity is $1.50 per kwh.
Two firms, A and B, each currently emit 100 tons of pollution into the air. To reduce the pollution from now on EPA will require a pollution permit for each ton of pollution emitted into the air. EPA limits pollution to 60 tons, giving each firm 30 p..
Respond to the following discussionnn post: Money does make the world go around, before there was money it was simply trading goods. However, the growing need of money within our fast growing society has often caused rifts due to greed and wanting po..
Suppose individuals are willing to pay $500 for an airbag that reduces the probability of being killed in a car accident by 0.0001. Calculate the value of a statistical life using the willingness to pay approach. Suppose Joe plans to work for another..
Which of the following best describes the real balances effect? As the price level rises, the real value of dollar-denominated assets:
Assume that you are the manager of a company that experiences a 50% increase in market demand for its product during the summer months (June through August). One option for meeting this increased demand is to require existing company employees to wor..
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