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A busy attorney regularly works out with the help of a trainer at the local gym. She pays $400 per month directly to the trainer for this service. Over time, the two fell in love and got married. They still work out together (just like before) and she still gives him $400 per month but they both consider the money to be "spending money". Assuming that this is the only thing that changed, what happens to the GDP? Explain and support your answer. (hint: this money is no longer in market activity)
The consumption function is given by:C=250+0.75Yd. What is the multiplier in this economy? Assume that the government spending increases by 100. By how much will equilibrium output increase?
suppose that an oligopolistically competitive restaurant is currently serving 260 meals per day the output where mr
What price should be set if the commission wishes to eliminate economic profits?
Which argument below is NOT one of the five assumptions about the economic rules of the game in America.
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Explain what the short is--run effect of a fiscal contraction (lower government spending for example? What happens to the nominal wage rate during the process of moving from short-run equilibrium to long run equilibrium? What about real wage rate
Demand for DVD rentals at a video store is described by the equation: Q= 4,000-500P, where Q denotes the number of DVDs rented per week and P is the rental price in dollars.
sarita signed up with netflix for a fixed fee of 16.99 per month. for this fee she can receive up to 3 dvds at a time
The marginal cost pricing model computes a mark up over marginal costs using estimates of the price elasticity of demand. Will any other pricing strategy result in higher profits?
felix is a wheat farmer who has two fields he can use to grow wheat. the first field is right next to his house and the
Describe the difference between a diminishing marginal product of labor and a negative marginal product of labor. Why would a profit-maximizing firm always choose to operate where the marginal product of labor is decreasing (but not negative)?
Suppose that the price of pumpkins in Austin has fallen by 10%, while total spending on pumpkins in Austin has gone up by 2%. Which of the following could explain those changes
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