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Q1. Unusually good weather which improves crop production also a major oil discovery are examples of unexpected supply shocks in the economy
Q2. Two firms examined the same capital budgeting project which has an internal rate of return of 19percent (%). One firm accepted the project but the other firm rejected it. One of the firms must have made an incorrect decision.
Discuss the validity of this statement.
Explain whether or not you believe modern media is an effective check on government action.
Country Z is a developing country that is facing problems of deforestation.
In your opinion should our government impose price floors and/or price ceilings in our economy.
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40.
Specify the set of mutually beneficial allocations relative to the initial endowment and illustrate the set.
She is now considering raising her prices by 20 percent to offset the increase in her monthly rent.
The two firms have the same demand curve P=100-4Q, Marginal cost of Firm 1 is 5 and for firm 2 is 10.
Elucidate Illustrate what President Roosevelt might have been trying to achieve, using the model of aggregate demand also aggregate supply
Use the 2007 numbers in the first column to compute, for each of the four countries, the percentage gap between the steady-state ratio.
Write down a formula that express the marginal product of labor in the short run as a function of the amount of labor used.
Distinguish between the two types but knows the probabilities of each type. What would be the result in this market for loans.
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