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This chapter covers four broad classes of research-rational expectations theory, random walk in output, real business cycle theory, and models that endeavor to explain why output can diverge, in the short run, from its full-employment level. To what extent do these models complement or contradict each other? Discuss.
A pharmaceutical firm is marketing a patented drug it has developed (the firm therefore has monopoly rights over the drug). The demand for the drug is given by Q = 8000 8P (MR(Q) = 1000 Q 4 ), where P is the price of the drug (in cents)
Calculate the multiplier (M) and equilibrium GDP for the following: Autonomous Consumption (dissaving) = 1200, G = 1850, I =1390, (EX - IM) = 270, and MPC = 0.72.
Let the market demand for rye bread be given by Q = 500 I - 250Prye 400Pwheat, where Q is monthly demand in number of loaves, I is average monthly income in dollars, Prye is the price of a loaf of rye bread, and Pwheat is the price of a loaf of wh..
Consider a Stackelberg duopoly game of quantity competition. Firm #1 is the "Leader" and firm #2 is the "Follower." Market demand is given by the inverse demand function p=100-4Q.where Q=q1+q2 is the total output of the two firms.
Describe the successive loss of information as the presentation changed from ratio to nominal.
a firm in a purely competitive industry has typical cost structure. the normal rate of profit in the economy is 5 percent. this firm is earning $5.50 on every $50 invested by its founders. what is the percentage rate of return
does the problem relate to a problem of property rights?
What organizational authority is required for the personnel who carry out the quality audit? E. What qualifications should the personnel have?
The price elasticity of demand for a textbook sold in the United States is estimated to be -2.0, whereas the price elasticity of demand for books sold in overseas markets is -3.0. The U.S. market requires hardcover books with a marginal cost
A city engineer knows that she will need 25 million in 3 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 20 million vehicles per year. How much per vehicle should the toll be to cover the cost of the..
A man wishes to set aside some money for his daughter's college education. His goal is to have a bank savings account containing an amount equivalent to $20,000 in today's dollars at the girl's 18th birthday. The estimated inflation rate is 8%.
Consider the production of holes. To dig a hole, it takes one person (P) and one shovel (S). The total number of holes dug is given by the production function h=f(P,S)=min(P,S). If you currently have 2 persons and 4 shovels
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