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Draw a graph representing a hypothetical economy in a recession. Carefully label the two axes, the 45-degree line, the AE curve, and the equilibrium level of real GDP. Indicate and label the GDP gap and the recessionary gap.
Suppose a country has a money demand function (Md/P) = kY where k is a constant parameter. The money supply grows by 12 percent per year and real income grows by 4 percent per year. What is the inflation rate
Discuss the potential role of each of the factors
Assume the graph below represents the market demand for a patented prescription drug together with the long run marginal cost and average cost functions for producing the drug. (note: the diagram assumes that at output levels over 50 million.
questions1.what is meant by the term lsquopath dependency? discuss how path dependency has effected the development of
Andre walks Julia's dog once a day for $50 per week. Julia values this service at $60 per week, while the op-portunity cost of Andre's time is $30 per week. The government places a tax of $35 per week on dog walkers. After the tax, what is the los..
laboratory equipment sells for $75,000. The manufacturer offices financing at 8% with annual payments for the 4 years for the $50,000 of the cost. The salesman is willing to cut the price by 10% if you pay cash.
Derive the solution to this problem. How do the criteria differ? Use the SVD of the Lj to simplify the comparison of the two approaches.
A local video store estimates their average customer's demand per year is Q = 20 - 4P, and knows the marginal cost of each rental is $1.00. How much should the store charge for an annual membership in order to extract consumer surplus
Choose one or more areaa of your relationship you would like to improve which is discussed in the course materials (listening skills, conflict management, perception, nonverbal communication, improving communication climate, etc.,
Given the utility function U(X,Y)=X^0.5+Y^0.5for John. a) Do the preferences indicated diminishing marginal utility for Xand Y b) If john has income of 30 dollars. What is his demandcurve/equation for X when the price of Y is 2 dollars.
Illustrate the consumer's opportunity set in a carefully labeled diagram. Show how the consumer's opportunity set changes when the price of good X increases to $10. How does this change alter the market rate of substitution between goods X and Y
An investor deposits $30,000 annually at the end of each year for the next 15 years. At the end of the 16th year he starts to withdraw a geometric series of 20 annual payments, each 5% larger than the previous one. If the first payment is $50,000
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