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The chapter suggested that because large increases in oil prices transfer income to countries that cannot rapidly increase their consumption or investment and therefore must save their windfalls, world real interest rates fall in the short run. Put together data on the U.S. real interest rate for 1970-1976, a period that includes the ?rst OPEC oil shock. How did the U.S. real interest rate behave?
As a portfolio manager whose company has investments in a country with a high level of debt what would you do to raise your companies profit or protect their interest if;
Now you want to "improve" the aggregate production function to increase the supply capacity of the economy. That it, you desire to move the vertical LRAS to the right on the AS/AD diagram.LIST four initiatives that you would focus upon to get the j..
Elucidate what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred.
In your own words, describe the meaning of average cost. You normally buy a crate of wine for $75. One crate has 6 bottles of wine. After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in ..
Assume that the following information about the economy is correct. The potential GDP is 3 percent. Real GDP has fallen at a minus two percent rate in the last 12 months.
To complete this activity, you will first need to access the following web sites and research historical inflation rates and money growth data
Illustrate what is the effect on the supply and demand of skateboards. Every events described below will have some impact on the demand for skateboards.
1. suppose the marginal benefit mb of national defense is mb 1000 - 10q where q measures units of national defense
Several years ago, the orange growers of Florida launched a marketing campaign in which the spokesperson, while holding a can of California almonds, told viewers: "One can a week. That's all we ask."
Consider the following production function for combination of capital and labor, Q=f(L,K)=L^0.4*K^0.5. Is this function homogeneous in K and L?In the long-run, does it exhibit increasing, constant, or decreasing returns to scale?
For the 2nd quarter of 2011, identify the estimate for the current dollar value of Gross Domestic Product for the USA and explain in words what this number measures.
If a firm had decreasing returns to scale and at all levels of output and it divided up into 2 equal- size smaller firms, what would happen to its overall profits?
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