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Question: 1. Consider the Direct Output function and Consumer Output function and the state provision of roads and highways.
2. How might you measure the direct output of the state? How might that differ from the consumer output that citizens experience?
3. Would individuals' decision to purchase a car instead of taking public transportation influence the direct output or consumer output? Which aspect of the function would be affected, and how?
If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?
If government decided to increase the government spending by $1M, draw the change to the equilibrium aggregate expenditure and real GDP.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find out that consumers won't buy it because they don't like the taste. From an economic prespective, the company should
Consider an economy whose production function is Y = Kθ(AL)1-θ with A = 4K/L. Reduce the production function to the form y = ak. What is a? What are the growth rates of output and capital in this model
Does concern for the environment affect the economics of Ocean Spray's business?If so, how?Is management attentive to environmental issues?
Suppose that the unemployment rate is 6.5% and current-dollar GDP is $1,45 billion. Using Okun’s Law, what would be the potential GDP number corresponding to a natural unemployment rate of 5.5%? What would be the dollar value of the recessionary gap
The economy of Mini land has an income of $400, consumption is $200, government expenditure is $200, and the tax earnings of government are $150. Calculate private saving
Calculate the official measure of the deficit in year t and calculate the correct (i.e. inflation adjusted) measure of deficit in year t.
What monetary policies do you think caused the crisis and what were the effects of the policies implemented in reaction to the crisis - Do you think the solutions worked in the short term? In the long term?
What is the per-unit amount of both externalities? Discuss both government and private solutions that would result in an efficient outcome.
If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event...
If the price elasticity of demand for gasoline is 0.3 and the current price is $3.20 per gallon, what rise in the price of gasoline will reduce its consumption by 10 percent.
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