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Two economies, A and B, start out with real GDP equal to $1,000. If country A grows at a rate of 5% while country B grows at a rate of 10%, calculate the following:
a) Country A's level of real GDP after 3 years.
b) Country B's level of real GDP after 3 years.
c) The difference in the two countries GDP after 3 years.
If imports of Brazilian ethanol begin to rise sharply in the future, what do you predict will happen to the size of the import tariff levied on this good?
Given that the economy raise by the banking system and creation of money through lending, if one market is down are we to suppose that these other firms that are facing increased demand will borrow enough to counter balance the amount
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
Explain briefly the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate.
Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
Many demographers predict that the United States will have zero population growth in the twenty-first century, in contrast to average population growth of about 1 percent per year in the twentieth century.
What is a maturity bucket in the repricing model? Why is the length of time selected for repricing assets and liabilities important in using the repricing model?
Suppose the payoffs are instead as follows If they both open at location A, theater earns 12 while the restaurnat earns 8. If both open at B, the theater earns 8 and the restaurant earns 12. IF they open at different locations, they both earn 2.
What is her marginal rate of substitution when L = 100 and she is on the budget line? What is her reservation wage? What is her optimal combination of C and L?
Explain why a monopolist can increase profits by practising price discrimination compared with using a single price to maximize profits? What are the different kinds of price discrimination?
Carefully explain what happens to the demand for a Giffen good
Suppose the government is running a surplus (rather than a deficit) and aggregate demand is so high that any further increases in spending will cause only inflation, with no increases in production. What should the government do with the extra mon..
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