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Suppose the stock of capital and the workforce are both increasing at 3 percent annually in the country of Wholand. At the same time, real output is growing at 6 percent. How is that possible in the short run and in the long run?
Illustrate what effect would a period of rapid inflation likely have on the role of money.
Stlyes Inc. estimates that the total annual cost of producing shirts given equation TC = 5,000 + 4,100Q - 8Q2 + 0.004Q^3. If the market price is constant, what is the shutdown level of output?
How would you account for the great divergence that is acceleration of economic development in the West in 19th century while much of the rest of world remained characterized through low rates of economic growth?
Mr. Shanku has borrowed dollars in the US but is now concerned regarding its currency risk. What alternatives does he have to limit his risk.
Assume a country decides it will either dollarize or create a currency board. Of these two options, why might dollarization be a better choice.
Life insurance companies require applicants to submit to a physical examination as proof of insurability prior to issuing standard life insurance policies.
The economy has no unemployment and no inflation, but the government has determined that economic growth is too low and that the cause of this is a low level of investment. Using IS/LM, craft a set of policies that will stimulate investment BUT l..
What are the reasons why the colonized region in latin america remained underdeveloped? How/Why was the Great Depression considered an "imported crisis" for Latin America? Under ISI policies, Latin America became one of the most protectionist regio..
Explain whether you think the supply of the following goods is elastic or inelastic,
The following outputs considered an intermediate good, a final good, or neither for purposes of calculating GDP in the current year.
If every $1,000 increase in the real price of homes adds 5 cents to annual consumer spending (the “wealth effect”), by how much did consumption decline when home prices fell by $2 trillion in 2006–8?
You are looking to install a new solar energy system for your house (for heating, air conditioning, and hot water). The cost of the system is $14,000 and the annual savings in electricity for this system today is $2500. This system has a lifespan ..
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