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Why do long-run elasticities of demand differ from short-run elasticities?
Consider two goods: paper towels and televisions. Which is a durable good?
Would you expect the price elasticity of demand for paper towels to be larger in the short run or in the long run? Why?
What about the price elasticity of demand for televisions?
Suppose, in a given week, float raises $900 million, Treasury deposits at the Fed rise $1500 million, discounts and advances decline $200 million, and foreign deposits at the Fed increase $150 million.
Describe what effect an expansionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Illustrate what does this say about the likelihood of our running out of resources.
A machine cost $4,000. It lasts two years and has no salvage value [that is, it has no value at the end of those two years of use]. In every year, it produces $ 2400 in income. Should the company invest in machine if the interest rate is 10 percent?
As all points on a contract curve are efficient, they are all equally desirable from a social point of view.
Illustrate what impact would the introduction of online rental of DVD'S have had on the in-store movie rental market.
The Federal Reserve's publishes the H.3 Statistical Release-Aggregate Reserves of Depository Institutions and the Monetary Base-weekly. Recent releases show that the composition of the supply of total reserves
Compute the income elasticity also elucidate how sale of the novels would change during a period of rising incomes.
The consumption of which bar yields the greates marginal utility?The reason why people are charged for an additional can of soda they get from a soda machine, but are not charged for an additional paper taken from a newspaper dispensing machine, is..
Illustrate what has been, also what will be, the short run and long run impact of the Federal fiscal policy which has been followed in the past few years.
Explain briefly why capital is the fixed factor in the short run, and not labor.
If my optimal choice for two goods (cookies and milk) is different from two different weeks (for example, week one is C:8,M:16 and week two is C:16,M:16) BUT INCOME IS THE SAME throughout all weeks ($8).
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