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Q. Assume that gross private domestic investment is $800 billion and the government (state, local, and federal combined) is currently running a $400 billion deficit. If households and businesses are saving $1,000 billion, what is the value of net exports?
Q. Which of the following recieves government subsidies that are in place to protect the population rather than the economic reason?
Where Q is the production and V is the number of employees working 8 hours a day
Consider the general equilibrium model on local public goods that we discussed in class. We found that the optimal population size
Illustrate what amount of profit does the industry fail to pick up by refusing to increase output by one unit
Explain how would a low-cost price leader enforce its leadership through implied threats to a rival. Provide at least one example of such a strategy.
The Central Bank of Muji wishes to eliminate the recessionary gap while expansionary monetary policy. The central bank can do so by stimulating consumption and planned investment.
A county is considering using a piece of park land for one of two alternative recreation projects.
Compute the upper also lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
Illustrate what do you think would be the short-run impact on the firm's production.
Assess the role of the Federal Reserve in mitigating the negative impact of the 2008 financial meltdown on the economy.
If the annual real interest rate on the loans is 6%, explain how many car companies will buy a new car assembly machine.
Impact the decrease in the price of land will have on this firm's short run cost curves (short run fixed costs, variable costs also total costs). Elucidate your illustration.
Explain the solution to the firm's cost-minimization difficulty ever occur off the iso-quant representing the required level of output.
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