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If foreigorn exchange speculators become more optimistic about the long-run real value of the domestic currency, domestic investment will rise. (Give full explainations for this statement)
In each of the following cases, either a recessionary orinflationary gap exists. Assume that the aggregate supply curveis horizontal so that the change in real GDP arising from a shiftof the aggregate demand curve equals the size of the shift of th..
Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases. If we are at an output where marginal cost is decreasing, then: A. marginal product must be increasing. B. average variable cost must be d..
Three students want to order pizza for dinner and they have decided to play the following contribution game in order to collect the money. Each student takes turns in order to place money inside a jar. If at least two students contribute the pizza..
If resources available for human consumption were out of limit, there would be no need for a subject field such as economics. Why do I say this?
Elucidate why increases in the price of a labor-intensive good lead to proportionally greater increases in the wage rate in a labor intensive country.
Assume that the yearly personal income per capita is in the US is $39,000 in 2008, the price of gasoline is $4.00 per gallon, and the consumption of gasoline per capita is 450 gallons.
Explain whether there is a relationship between inflation and unemployment and should government interfere and reduce inflation and unemployment?
Bow Wow Bazaar is a increasing company specializing in gourmet dog food and supplies in Florida resort communities. BWB's demand and cost information are as follows:
Derive the marginal cost curve from your answer to (c) and show the relationship between the marginal cost and marginal product of labor.
Explain how banks are financial intermediaries. What are reserves? What are excess reserves? Explain how the Fed can affect the quantity of excess reserves in the banking system
Explain how does your organization go about estimating its sales. How does it estimate the demand for new products so that it can prepare a production run.
Each demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good.
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