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1. "In the Solow model, an economy that starts with a higher stock of capital per capita will reach a higher steady state level of capital per capita"
2. " In the money market, a decrease in real income will tend to decrease the equilibrium interest rate (abstracting from the goods market)"
3. "If prices adjust inmediately, then monetary policy will have no effect whatsover"
4. "Fiscal policy cannot affect output in the long run"
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
In a closed economy, marginal propensity to consume .6. If the economy opens up to world and marginal propensity to import is .4, using the Keynesian model of output determination;
Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
Economists consider which of the following costs to be irrelevant to a short-run business decision? In economic analysis, any amount of profit earned above zero is considered above normal because,
An alternate means of depicting the individual labor supply decision is via a graph with hours of market work (Hw) on the horizontal axis and the market wage rate (W) as well as the shadow or home wage (W*) on the vertical axis.
Patients who need the surgery must pay for it themselves. Among which of the surgeries has the lower inflation rate.
Elucidate what it means that the preference relation has a utility function representation,
During recent years, MicroChips Corporation has enjoyed substantial economic profits derived from patents covering a wide rang of inventions and innovations for microprocessors
Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following ..
a) Should the Federal Reserve Board focus exclusively on the problem of inflation b) What other goals are appropriate for Federal Reserve policy c) What is the appropriate goal for the inflation rate d) How effective is Federal Reserve monetary polic..
Your company invests funds in Greece. The company claims that the investment will grow to 10 times the original investment over the next 20 years. The company allows you to invest $200 per month for the next 20 years in this activity. If, in fact..
Describe the output and price effects that influence the profit-maximizing decision faced by a firm in an oligopoly market. How does this differ from output and price effects in a monopoly market
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