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If we were to have an episode of hyperinflation in the United States, what would be the effects? How would it affect your life, personally? What current U.S. political interest groups or parties would likely gain greater power as the result of hyperinflation? Which would likely lose power? Can you think of a plausible set of United States government policies that might cause hyperinflation to happen here? Use your imagination.
Suppose Country A is a small open economy that takes world prices as given. What would be the effect on wages and rents in A if it were to experience an inflow of foreign capital? Use a diagram AND a table to convey your answer. Which groups would fa..
What is the probability that it will take a worker between 6 and 10 minutes to complete the task
If the percentage change in quantity demanded is less than the percentage change in price, we would say that over this range, demand is:
Consider a market with demand given by P=450-2Q and supply curve given by P=100+3Q. Calculate Producer Surplus if there are no taxes.
Oceania is a small open economy. Suppose that a large number of foreign countries begin to subsidize investment by instituting an investment tax credit (while adjusting other taxes to hold their tax revenue constant), What happens to world investment..
The positively-sloped part of the long-run average total cost curve is due to which of the following?
Refer to the pay off matrix below. Which of the following is a Nash equilibrium? (hint first determine whether one of the companies has a dominate strategy)
U(X,Y)=X.6Y .4 , MUX=.6X -.4Y .4 MUY=.4X .6Y -.6 PX=3 PY=4 I=60 (a) Calculate the MRSX,Y. (b) Write the budget constraint. (c) What is the consumption bundle to maximize the utility level? What is the maximum utility level?
A credit card company wants your business. If you accept their offer and use their card, they will deposit 1% of your monetary transactions into a savings account that will earn a guaranteed 5% per year. If your annual transactions total an average o..
After using your forecasting model for six months, you decide to test it using MAD and a tracking signal. Here are the forecast and actual demands for the six-month period: PERIOD FORECAST ACTUAL May 450 500 June 500 550 July 550 400 August 600 500 S..
Call P the unit price of each stamp and find out how many stamps and how many photocopies the firms purchase depending on the value of P.
Suppose an individual consumer has preferences over consumption c given by u(c) = c^1/2 . The individual faces uncertainty of the following form: With probability π the individual has wealth of ω which she can spend on consumption; with probability 1..
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