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1. Suppose you bought a bag of groceries at Food Lion this past September for $46.54. Calculate the price of a similar bag of groceries in 1999 prices if the CPI for food and beverages in September 1999 was 165.1 and for September 2009 it was 217.617.
2. Suppose the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off. What will be the impact of this law on the country's unemployment rate over time? Discuss how labour market mobility affects the unemployment rate.
What are some of the positive externalities of education? Why may higher education offer fewer positive externalities than primary or secondary education?
Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Write down the relationship between savings, capital formation, and consumption.
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
Political business cycle: Do economic events affect presidential elections? To test this so-called political business cycle theory, Gary Smith 20 obtained the following regression results based on the U.S Presidential elections for the four yearl..
True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences). You can also use diagrams if they are helpful. Each correct answer is worth.
Suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater supplies in a watershed by 60% from current use levels.
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:
What is a fixed payment made by the privately insured patient in exchange for receiving the medical good or service? What is the percentage of each and every medical bill that the patient pays rather than the flat dollar amount?
Given the data of real disposable income and real consumption, draw consumption function, determine the slope-What is the marginal propensity to consume?
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M.. He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.
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