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Explain how a clear and simple Policy Targets Agreement (PTA) might have helped to maintain a low inflation regime with low unemployment in the 1990s while in 2012 a similar regime no longer seems to be achievable under a very different PTA.
Using the method of the Lagrange multiplier calculate the prices that you will charge to so that the profit is maximized and at the same time the stadium will be filled to capacity. Calculate the number of each type of tickets sold, as well as the co..
Suppose investment I is 900, government purchases are 800, and net of exports are 300. What is the spending balance? What is the GDP multiplier?
q.assume that omar s marginal utility for cups of coffee is constant at 3.5 units per cup no matter how many cups he
q1. according to a study of u.s. cigarette sales between 1955 and 1985 when the price of cigarettes was 1 higher
What must it be? Can you think of any way of justifying such a value for this parameter? How else might you explain the large difference in income between Richland and Poorland?
This is an essay question, but I don't know how to explain. Should I use the supply-demand curve to explain, or use the marginal cost- marginal revenue curve to explain this question.
find the quatanties of capital and labor that maximize output,while at the same time satisfy the firms budget constraint. what will happen to the firms output if the budget is raised by 100?
The shape of the long-run cost curve is determined by economies and diseconomies of scale. Contrast this curve with the short-run cost curve as it relates to increasing and diminishing marginal returns to labor.
Illustrate what were you thinking about the economy in 2005 and did you ever foresee a crisis of this magnitude.
q. real wages and productivity-are workers paychecks keeping up? over the long run historically real wages produce
Suppose you decide to elicit high CEO effort when and if bad luck occurs by paying bonus for $500 million outcomes. Illustrate what criticism can you see with this incentive contract plan.
Why is it that a profit-maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? Explain and justify your answers in detail
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