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If real GDP is below potential GDP the government might decrease its expenditure on goods and services decrease transfer payments raise taxes or do some combination of all three this is called ?
1. change in quantity of hybrids divided by change in in price of gas 0.25 and change in quantity of suvs divided
Explain the two types of capital expenditure giving relevant example in each case.
1. What is the difference between GDP, nominal GDP, Real GDP, GDP per worker and GDP per capita? 2. What were your reason for selecting the other country?
Classical macroeconomics theory concludes that ultimately Fiscal policy generates only quantity effects, erratic investment causes long business cycles or else.
in the late 1960s milton friedman and edmund phelps argued that there was not a structural relationship between
Suppose that annual income from a rental property is expected to start at $1,300 per year and decrease at a uniform amount of $50 each year after the first year for the 15 year expected life of the property. the investment cost is $8000 and i is 9% p..
To implement the project, a new equipment is purchased at $15,000 which has a useful life of 10 years. Using the annualization factor at 4% interest rate, what is the equipment's annual depreciation cost?
Consider the optimal growth model with inelastic labor supply, and for simplicity assume that there is no population or productivity growth. What are the long-run effects of this change on capital
Explain how each of the following would affect the equilibrium real wage, and equilibrium level of employment. a. A relaxation of immigration laws which leads to a large increase in the number of immigrants entering the country.
the answer to each question should be a short to long paragraph.1 what are the advantages and disadvantages of using an
Which interest rate represents the opportunity cost of holding money - the real or the nominal interest rate? Explain and argue intuitively why the nominal interest rate (eg, the yield on a riskless bond) cannot fall below zero.
how do barriers to entry impact the level of competition in a market? what might happen to market price as greater
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