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Assume a closed economy described by the following equations: C = 300 + 0.6(Y-T) ; I = 500 - 40R; G = 200; T = 200; M = 2800; (M/P)d = 4Y - 100R; SRAS: P = 1; LRAS: Y=1000 e) Find short run equilibrium level of output, prices, and real interest rate.
The value chain and strategic cost analysis. Sustainable Products raises trees, cuts the trees into logs, and processes the logs into paper. Sustainable Products sells the paper to a distributor, who then sells the paper to printers. Assume that a we..
Define the concept of an externality. Why will unregulated market systems not allocate resources efficiently where externalities are present? Draw a diagram to illustrate the over allocation of resources to a market characterized by negative external..
Explain how should the United States Supreme Court interpret the United States Constitution.
Which of the following is the best example of a consumer good? 1. the riding lawn mower purchased by the landscape company. 2. the disposable diapers purchased by the new mother for her baby. the paint purchased by the prison 3. the cookies purchased..
conomist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth.
If there is too much deflation: A liquidity trap arises when:
John intends to invest a certain sum of money today in order to earn a return of $6 000 in five years time. how much should john invest today at the interest rate of 7%, compounded annually?
Refer to the figures of a monopolistic catfish farmer below: Instructions: Enter your responses rounded to the nearest whole number. (a) What is the highest price the monopolist could charge and still sell fish? What is total revenue at that highest ..
A facility engineer is looking at two proposed alternatives to install anti-pollution control equipment mandated by the State of California. Assume equal lives of 25 years, no salvage values, and interest at 25%. Make the comparison on the basis of p..
Suppose you are buying a car. You go to one dealer who works a deal in which you would pay $3,740 each year for three (3) for the car. Another deal gives you a deal in which you would pay $2,870 each year for the four (4) years. Which is the better d..
Assume there is uncertainty about the costs of disposing of the waste: There is a fifty-fifty chance that they will be $10,000 or #30,000. Discuss how this uncertainty affects the cost-benefit calculation, if the government is risk neutral, that is ,..
A certain college graduate, Sallie Evans, has $24,000 in student - loan debt at the end of her college career. The interest rate on this debt is 0.75% per month. If monthly payments on this loan are $432.61, how many months will it take for Sallie to..
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