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Briefly describe the general environment of technological progress. Why might the market deliver a suboptimal level of technology? Discuss in detail three of the determinants of the success of a country's technological development.
Give two different causes of how an economy can experience stagflation. explain in words why rising prices decrease the multiplier effect of a shift in the aggregate demand curve. Think about the impact of an upward sloping aggregate supply curve and..
Illustrate what does the area EBCD represent. Provide a full explanation of the concept that is shown in that area.
Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microchips from NoBugs Corporation, the only producer of chips meeting Sterling's high specifications. Write a discussion of the ..
Suppose that the so-called “new normal” sluggish economic growth of the last several years is the economy’s real potential, and not the higher growth rate of years past. What does this imply about how accommodative the Federal Reserve has been (and s..
q1. suppose the market is initially in equilibrium. the initial demand course is p 90-q. the initial supply curve is
Asparagus is an identified good, draw a graph of both the supply and demand curves that depsicts its market equilibrium. From the original graph, describe the effects on the supply and demand (shift left or right) that would cause the following chang..
Why does the government grant patents to new inventors? Think about new cancer drug research and new drug prices. Why does the government give monopoly power to utility companies?
Assume all money is held in the form of currency. Assume central bank money (H) is initially equal to $100 million. Now suppose the Fed conducts an open market purchase of government bonds equal to $10 million. Explain the effect of this action on:
Empirical estimates of the price elasticity of demand suggest that the demand for household consumption of alcoholic beverages is
Explain your intuition as to why premia rise between April and September. Which of options above has lowest time value.
Suppose the parameters of the Romer model (the no-capital version) take the following values: A¯ 0 = 100, ¯` = 0.10. ¯z = 1/500, and L¯ = 100. What is the growth rate of output per person in this economy? What is the initial level of output per perso..
Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She would like to retire with a pension of $40,000 per quarter for 25 years. If she works 37 years before retiring, how much money must she and her emplo..
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