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Please compare the competing BGS models in terms of their respective characteristics. Then rank them from best to worst fit for the current US economy. Provide logical reasons for your ranking.
This essay should be 3-4 pages long and should contain sources of reference in addition to the textbook. Also, please adopt the APA style of citations.
Hotelling’s Model (10pts) Consider the Hotelling’s model with three players, each chooses a policy position on the real line. Is all three players choosing xm (the ideal policy of the median voter) a Nash equilibrium? Explain your answer.
Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces teapots, it can make 40 per day. If Arcadia produces only surfboards, it can make 60 per day. What is the opportunity cost of one teapot in Arcadia?
Because real investment by foreigners expands a country’s capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?
What generalization can you make asd to the relationship between marginal revenue and elasticity of demand? Suppose the marginal cost of successive units of output was zero.
q.global studios are thinking of producing a mega film aqua world which could be a mega hit or a mega flop. profit is
A company invested in a pick and place robot for $675,000. The installation costs incurred were $175,000. The company obtained a loan to finance 60% of the equipment to be paid in six equal principal payments plus interest every year at 8%. Perform a..
If you know that the marginal utility per dollar spent on product Alpha is less than the marginal utility per dollar spent on product Beta, consumers who spend all their income on these two products can:
Suppose current market federal funds rate is 0 percent. The interest rate on long term government bonds is 5 percent and risk premium for this bonds is 2 percent. Assume liquidity premium hypothesis and expectations hold. Explain how the Fed can boos..
q.the first company is a trendy bar. the bar is currently seeing many young well paid professionals as customers but
Draw an indifference map for a typical person’s preferences over five-dollar bills and tendollar bills using the vertical axis for five-dollar bills and the horizontal axis for ten-dollar bills. What is the marginal rate of substitution (MRS)?
Suppose two countries, A and B, with the same production function Y = K? L 1?? . The value of ? is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Compare both economies to the Golden Rule.
A local car dealer is advertising a 24 month lease of a sport utility vehicle for 520 payable at the beginning of each month. the lease requires a 2500 down payment plus a 500 refundable security deposit that is refunded at the end of the 24 month le..
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