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Use the diagram for this exercise to draw a level of aggregate expenditures that would lead to an economy at an equilibrium, E, with a real GDP of $8 trillion.
A biomass plantation operator can invest $1,000 today to plant a new crop of trees, which, is estimated, can be sold at a net gain(sales-harvesting costs) of $10,000 in 40 years. Determine whether this is profitable if a rate of return of 7%/yr is..
The Fun-Land Amusement Park is a 40-acre fun park full of rides, shows, and shops. Fun-Land's marketing department segments its customer base into two parts: local patrons and tourists. Fun-Land assumes local patrons are more price sensitive than ..
In order to determine whether time is being spent optimally, a commercial fisherman has recorded the following information over the past year: "hours spent fishing" and "quantity of fish caught." What is the marginal product of fishing for hour sp..
this graph depicts a change in the macroeconomy caused by the Federal Reserve lowering the required reserve ration. After this Fed action, what is the short-run price level? chegg
Evaluate this view in terms of the external economy model.
When a recession is over, do people start to immediately feel affects of an efficient economy? Use the experience of most recent recession to justify your answer.
You own a building that has 4 possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the building in each use is $2000; $3000; $4000; and $5000, respectively. You decide to open a hardware store. The opportunity cost..
Show that β^ is an unbiased estimator of β and obtain its variance-covariance matrix. How can the standard errors of the elements of β^ be estimated?
Like personal computers, digital cameras have become a common household item. Digital camera prices have plunged in the last 10 years. Use the model of demand and supply to explain the fall in price and increase in quantity.
Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2007, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per ..
Has the power of unions in the U.S. economy been shrinking or growing in the last few decades? Why? In what sector has union growth been largest? Why might this be so?
If the Central Bank in uenced the nominal rate in such a way as to make the Quantity Theory of Money hold true (to your answer in the previous section), then what level of i (as a percentage) would they target
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