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Suppose you are the manager of a chain of computer stores. For obvious reasons you have been closely following developments in the computer industry, you have just learned that the government has passed a two-prong program designed to further enhance the computer industry position in a global economy. The legislation provides increased funding for computer education in primary and secondary schools, as well as tax breaks for firms that develop computer software. As result of this legislation, what do you predict will happen to the equilibrium price and quantity of software? ( show graphically)
according to the new york times november 18 2006 the number of car producers in china is increasing rapidly. the
suppose a consumer has 150 to spend on food and clothing. food costs 4 per unit and clothing costs 5 per unit. the
Your company is considering a price reduction on a product which currently sells for the price of $5.00.The price elasticity for the product is roughly equal to -2.3 over the range being considered for the price change.
Does Victor always prefer more of either good to less?
The Congressional Budget Office (CBO) on August 25, 2009 estimated that the accumulated deficit from 2010-19 will approximate $7.137 trillion.
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
Why is the money multiplier in the United States smaller than the inverse of the required reserve ratio? Provide one (1) reason. Explain why depositing cash into a checking account does not change the money supply. Provide at least one (1) supporting..
Suppose that the market demand for baseball players is perfectly inelastic (vertical) at 750 players. if the market supply increases due to an icrease in the number of available international players, show useing a graph how wages will change as a re..
abby consumes only apples. in year 1 red apples cost 1 each green apples cost 2 each and abby buys only 10 red apples.
an individual has to choose between investment a and investment b. the individual estimates that income and probability
Describe three problems of using fiscal policy to achieve a precise level of GDP and why is frictional unemployment inevitable in an economy characterised by imperfect job information and non-zero job-search time?
Use the following information to answer following questions, Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
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