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When firms differ in terms of their performance, economics integration generates winners and losers. The more productive (lower costs) firms thrives and expand, while the less productive (higher cost) firms contract.
Increase in Government expenditure makes increase in real GDP via multiplier process. If the effective multiplier for fiscal policy is 2, how much change in government purchases would be required to close a 500 billion negative output gap, other thin..
If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd))
An island economy produces only two goods, apples and bananas. There are five people (A,B, C, D, and E) living on the island with these preferences: For each of these five individuals, construct several representative indifference curves with apples ..
Find the following equivalent amounts if the interest rate is 8% compounded annually.
Yesterday Susan determined that the risk-free rate of return rRF, is 3 percent, the required return on the market portfolio, rM, is 10 percent, and the required rate of return on Stock K, rK, is 17 percent. When Susan considers the effect of this cha..
Esther price of maple syrup increased by $6 per pint - $7 per pint production increase from 250 to 300 pints what is the elasticity of supply over this range is Supply elastic or inelastic over this range
Assume that there are two categories of goods: protein shakes and all other products. A. Show using diagrams how a consumer's demand curve for protein shakes can be derived from an indifference map and a budget constraint diagram. Make sure you expla..
The welfare loss/dead weight triangle depicts:
he Bureau of Labor Statistics announced that in October 1996, of all adult Americans, 127,587,000 were employed, 7,221,000 were unemployed, and 66,645,000 were not in the labor force. How big was the labor force? What was the labor-force participatio..
Your company has the opportunity to make an investment that promises to pay $24,000 after 6 years. If your company has a required return of 8.5% on this type of investment, what is the maximum amount that the company should pay for the investment? Ex..
When using regression to combine forecast of the same Y variable derived in with various methods how do you determine the best forecasts to include in the model?
It is frequently observed that when a city is located next to a major highway, gas stations located close to the highway charge higher prices than gas stations located farther away.
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