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Discuss one (1) recent price change that you have noticed while visiting your local supermarket. Speculate on whether or not the price change that you identified was a result of a change in either supply or demand. Provide a rationale for your response.
For a budget spent entirely on two goods, an increase in the price of one will necessarily decrease the consumption of both if both goods are normal.
if consumption in the changed to 43 while government expenditure and net exports remained constant, what would happen to investment as a share of GDP ?
Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 6%. You hold the bond for five years before selling it. a. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return of your investment?
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of #1200 after the machine's useful life of 8 years. On the basis of an internal rate of return an..
The U.S. economy fell into a recession in 2001 and then proceeded into a slow-growth recovery due to a decline in investment. Show how a change in investment can have a big impact on GDP causing a national recession. Illustrate by showing what it loo..
In the case of demand-pull inflation, other things being equal:
In which directions are they pushing or pulling the U.S. economy. Also, do you think the gap between real GDP and potential GDP will widen or narrow.
A perplexing issue, particularly for many human resource management and marketing professionals, is the absence of a valuation in the traditional financial statements relating to human capital and other internally generated intangible assets, such as..
Assume a perfectly competitive market structure. Complete the diagram to show the profit maximizing price and quantity. Label each (use Insert textbox). Is the firm earning economic profits or losses? If so, what will occur over the long-term?
Suppose that there are 1,000 hot pretzel stands in New York City. The market demand slopes downward, and the pretzel market is perfectly competitive (and starts in long-run equilibrium). Draw the current (long-run) equilibrium for pretzels. Use two g..
Mayland Utilities has outstanding a bond issue that will mature to its $1,000 par value in 12 years. The bond has a coupon interest rate of 11% and pays interest annually. Find the value of the bond if the required return is 15%. Then tell if the bon..
An economy has $72, to divide between Hamlet and Ophelia. Hamlet has the utility function u[H] = U[H] (m[H]) = 3m[H], where m[H] denotes his quantity of money. Ophelia has the utility function u[O]= U[O](m[O]) = 42sqrt(m[O]), where m[O] denotes her q..
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