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Cola wars: What's your soft drink of choice? Soft drink sales have fallen for six straight years as consumers switched to healthier alternatives such as juices and cut back on spending in the recession. The two rivals have moved into bottled water, fruit juices, energy drinks, and sports drinks to try to maintain market share. Both companies saw decreased sales, but Pepsi had the greater loss. Overall, Coke product sales were down 0.5 percent while Pepsi saw a 2.6 percent decline.Describe the strategies in the game that Coca-Cola and PepsiCo play. With some assumed payoffs, create a payoff matrix for the game and find the equilibrium outcome.
calculate the V(gdp) using the velocity formula. All given is a LRAS graph with the following information derived from the graph Real GDP = 9 trillion and Price level = 3; Furthermore The AD line intercepts the x axis at 18 trillion and the y axis ..
What are some recent trends in investment spending? Are they likely to increase or decrease aggregate expenditure? (Remember that purchases of stocks and bonds are not investment, in the sense described in this chapter!)
In round numbers, real output doubled two times in the 40 years between 1950 and 1990, so it doubled every 20 years. This means that real output grew at a rate z that solves the equation 20 = 70 / z.Over this 40-year period, what is the average ann..
What are the implications of these results for a policymaker who wants to assess the costs of a recession?
Characterize the closed-economy equilibrium in the model of Section 19.3 and compare it to the equilibrium with trade characterized in the text.
We can divide inside lags into three smaller, sequential lags. What are these, and in what order do they occur?
(Anticipated Versus Unanticipated Inflation) If actual inflation exceeds anticipated inflation, who will lose purchasing power and who will gain?
Passengers using New York's MetroCard system must swipe the card at a rate between 10 and 40 inches per second, or else the card must be re-swiped through the card reader. Research shows that actual swipe rates by subway riders.
In a competitive market, the market-determined price is $60. For a typical firm producing 100 units of output, short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30. Is this firm making the profit-max..
Compute the percentage change in nominal and real GDP from 1988 to 1998, and from 1998 to 2008. c. Compute the percentage change in the GDP deflator over these two periods.
At what amount of labor input are the firm's average and marginal product of labor equal? Confirm that the average and marginal product curves satisfy the relationship discussed in the text.
What rule does a multiplant monopolist use to allocate output among its plants? Would a multiplant perfect competitor use the same rule?
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