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a. Explain in words how and why the multiplier G and the interest sensitivity of aggregate demand affect the slope of the IS curve.
b. Explain why the slope of the IS curve is a factor in determining the working of monetary policy.
You are interviewing three people for one sales job. On the basis of your experience and insight, you believe Jane can sell 600 units a day, Joe can sell 450 units a day, and Joan can sell 400 units a day. The daily salary each person is asking is..
Draw in the resulting equilibria or tangencies and join up all of these points. You have just constructed a price-consumption curve for good X. Can you understand why the curve is so called?
Irvine Aerospace of Santa Ana, California, was awarded a 5 year contract to develop an advanced space capsule airbag landing attenuation system for NASA's Langley research Center. The company's computer system uses fluid structure interaction mode..
A small business owner estimates that the heat loss through the exterior walls of her warehouse will cost approximately $4,000 next year. A local company is offering insulation that can reduce the heat loss by 80%,
Suppose that for given labor-market conditions [the variable you identified in part (b)], worker bargaining power throughout the economy increases. What effect would this have on the real wage in the medium run? in the short run? What determines t..
Assuming that this firm has positive fixed costs, did the firm earn economic profits, economic losses, or zero economic profits yesterday?
Suppose a monopolist faces a market demand curve given by P=220-3Q. Also, the marginal cost of production is constant and equal to 40. There are not fixed costs. What price should the monopolist charge in order to maximize profit as well as the dea..
In every scientific poll on inventions, the printing press has consistently been voted the most significant invention of the past 2000 years. What cultural and social changes were brought about by the printing press
An analysis of stock market manufactures the following data about the returns of two stocks.
Using the midpoints formula presented in the text, calculate the elasticity coefficient for each price level, starting with the coefficient for the $4 to $6 level. For each coefficient, indicate what type of elasticity is indicated, elastic demand..
a. If Firms B and C propose a merge, would the Antitrust Division likely challenge the merger Why or why not b. If firms G and H propose a merger, would the Antitrust Division likely challenge the merger Why or why not
For each of the following utility functions, find the marginal utilities (MUx and MUy) and the marginal rate of substitutional between x and y (MRSxy) and explain whether MRSxy is diminishing or not.
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