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Which of the following is the correct definition of economic growth?
1. growth rate of GDP
2. growth rate of per capita GDP
3. growth rate of real per capita GDP
4. growth rate of employment rate
5. growth rate of both GDP and employment rate
Compute the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
q.let the inverse demand curve be d q 56 - 2q q q1 q2. costs for each firm are a constant variable cost of 2 a unit
In the year of the shock, compute the value of GDP, price level, interest rates, and real money supply. Hint: Derive IS and LM equations to find GDP and interest rates. Calculate the new long-run equilibrium values for income, prices, interest rates,..
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..
How much profit will monopolist make if she maximizes her profit. llustrate what would be value of consumer surplus if market were perfectly competitive.
An asset purchased for $50000 has a depreciable life of 5 years, and it has a terminal book (salvage) value of $5,000 at the end of its depreciable life. With the straight-line method of depreciation, what is the assets book value at the end of year ..
You are the manager of a local sporting goods store and recently purchased a shipment of 60 sets of skis and ski bindings at a total cost
If there are two firms in the market, what are their profits after taking into account the entry cost?
Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn
Interest rate if no one else will give me a loan? Will I be better or worse off as a result of taking out this loan. How can you make a case for legalizing loan-sharking.
Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates
Currently there is a debate about whether high employment rates in the US are the result of cyclical factors or structural factors. Describe this debate? What impact might immigration have on the different types of unemployment?
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