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Q1. If you are the chief economist of a country experiencing high unemployment as well as flat GDP, what macroeconomic policies might you enact in response to these economic conditions? Explain how would you expect these policy changes to impact the economy?
Q2. How macroeconomic equilibrium does an economy achieve? Elucidate what affect does a high level of inflation have on macroeconomic equilibrium?
Q3. Joe Producer makes a product that sells for $1,000. In the production process, he pays $750 for wages, $125 for materials, as well as $ 75 for rent. Three-fourths of Joe's output is consumed as well as the rest is invested. Clarify how both the flow-of-product approach as well as the earnings approach can be used to measure GDP as well as the role profit plays in these calculations. Estimate GDP for Joe by means of both the product as well as income approaches as well as show how they must agree.
Assuming migration is unimpeded and costless, which of the following statements is most accurate about the effect of immigration on wages in both the origin and destination nations?
Illustrate what would be the production possibility frontiers for Brazil as well as the United States.
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Winston Churchill once thought that democracy is the nastiest form of government except for all others.
As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force.
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
Suppose she is offered a new job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits.
If there was a capital gain tax of 30 percent, what is the after-tax real interest rate, with the inflation rate of 8 percent.
Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.
Suppose that there is a unit mass of consumers who are uniformly distributed on the segment[0,1]. Two firms are located on the line and sell identical products.
China has continued to lag well behind the rest of the world in information technologies
If the demand curve is much more inelastic than the supply curve, clarify whether buyers or sellers will shoulder more of the tax burden from a new tax placed on the sellers.
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