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Consider how each of the following events is likely to affect real GDP. Do you think the change in real GDP reflects a similar change in economic well-being?
a) A blizzard in the Northeast forces everyone to stay home for a week.
b) The discovery of a new easy-to-grow strain of wheat increases farm harvests.
c) Increased hostility between unions and management sparks a rash of strikes.
d) Firms throughout the economy experience falling demand, causing them to lay off workers.
e) Congress passes new environmental laws that prohibit firms from using production methods that emit large quantities of pollution.
f) More high-school students drop out of school to take jobs in the fast-food sector.
g) Fathers around the country reduce their work-weeks to spend more time with their children.
Cigarettes are also heavily taxed. Illustrate what effect does this tax have on cigarette consumption
What value of y survives as a solution if all firms are competing for high ability workers.
Studies indicate that the changes in fiscal and monetary policy affect the 3 economic agents in the economy (households, firms and government). How do the changes in monetary and fiscal policy instruments affect you personally or work wise?
Assume that the Fed purchases a security for $75,000 from FirstBank. Also assume that the reserve ratio is 0.2 (20%). How does the open market purchase affect the T-accounts for FirstBank, SecondBank and Third Bank? What is the total increase in depo..
illustrate what are short-run and long-run effects on aggregate price level and aggregate output. There is an increase in taxes on households. There is an increase in quantity of money. There is an increase in government purchases.
Why does the assumption of independence of risks matter in the examples of insurance.
You are manager of BlackSpot Computers, which competed directly with Condensed Computers to sell high-powered computers to businesses. Explain how will impact BlackSpot bottom line.
Illustrate what kinds of statistics, graphs, or illustrations does author include. In Illustrate what ways do se visuals strengthen author's arguments.
ou are going to buy a new car worth $24,500. The dealer computes your monthly payment to be $514.55 for 60 months of financing. What is the dealer’s effective rate of return on this loan transaction?
Calculate the price of elasticity of demand for paint and show your calculations. decide whether the demand for paint is elastic,unitary elastic, or inelastic. explain your reasoning and interpret your results.
In our study of intertemporal utility maximization, everything (initial and ending wealth, interest rate, and consumption) in the budget constraint is expressed in real terms. Reformulate the budget constraint in nominal terms and show that for a two..
Explain how do you think which these individuals would rank the utility of these similar expenses for themselves.
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