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In the aggregate expenditures model, if aggregate expenditures exceed real GDP, the economy will:
a. expand, causing an increase in employment.
b. expand, causing a decrease in prices.
c. neither expand nor contract, causing employment to remain the same.
d. contract, causing a decrease in employment.
Compute the CV and EV associated with this price increase. how would you interpret these.
Consider Solow's model when the production function is Y = 1000K0.3 L0.7 . The population growth rate is 2%, ? = 0.1 is the depreciation rate and s = 0.25 is the savings rate. Suppose this economy was in its steady state when unexpectedly Total Facto..
You are the CEO of a Fortune 500 company. You have two objectives: 1. invest $5 million cash on hand short term (overnight to one month); and 2. borrow $100 million for your firm’s working capital needs.
Suppose that a store will sell 2000 boxes of bananas a week at a price of $12 per box. If the store raises its prices to $15 per box, it will sell 1500 boxes. What is the elasticity using the original formula? What is the elasticity using the midpoin..
Suppose that the price of IPATH increases by 5%,at the same time the price of laptops falls by 3% and income elasticity increases by 2%.
At what level must be a ceiling price imposed upon the monopolist's market to cause the monopolist to supply the efficient quantity supplied?
Elucidate why liberals have traditionally endorsed national authority.
q1. a monopolist has demand and cost curves given byqd 10000 - 20ptc 1000 10q .05q2a. find the monopolists
From the scenario, suggest substantive ways in which Herb and Renee may use the information in the table in order to ascertain the profit maximizing level of output and price. Provide a rationale for your decision.
Locate recent articles in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.
Some seed cleaning equipment was purchased at the end of 2008 for $8,571 and is depreciated by the double declining balance (DDB) method (not MACRS) for an expected life of 8 years. What is the book value of the equipment at the end of year 2,011? Or..
Purchasing credit life or disability insurance protection is usually 1) required in order to make the loan 2) non-negotiable 3)at the lenders option 4)very costly 5)a good idea for the borrower
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