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In the late 1990s a growing number of economists argued that world policymakers were focusing too much on fighting inflation.
The economists also argued that the technical level of potential output had risen. Show their argument using the AS/AD model.
A can manufacturing company produces and sells three different types of cans:Versions X, Y, and Z. A high-level, simplified profit/loss statement for the company is provided here. Corporate overhead(rent, general and administrative expense,etc.) i..
Can anyone discover how the Consumer Price Index (CPI), primary measure of inflation used through the government, is computed?
Explain the role of adjustable-rate mortgages (ARMs) in exacerbating the financial crisis. Explain the Basel requirements and how banks got around the Basel accords, which limited the amount of mortgages and other risky assets that banks could hold..
Consider a firm selling two products, A and B, that substitute for each other. Suppose that an entrant introduces a product that is identical to product A. What factors do you think will affect (a) whether a price is initiated, and (b) who wins t..
What will be the profit maximizing prices and the firm's profit, if the proposal of the marketing manager is accepted and calculate the profit maximizing price of the full package? What is the firm's profit in this case
Assume that the market demand for bus rides is given through Q=420-30P and market supply of bus rides is given through Q=30P, where Q is bus rides each week in thousands
1. Suppose we are looking at a supply and demand defined market for a hypothetical good called widgets. We observe that, because of falling consumer incomes, the demand for widgets increases. We also observe that, because of a reduction in ..
Suppose a consumer's income is used on two goods, X and Y. The consumer's income is $200 and the prices of X AND y are $10 and $5 respectively.
The management of the Mini Mill Steel company estimated the following elasticities for a special type of steel : Ep=2, EI=1, EXY= 1.5 and X refers steel and Y refers aliminum
Fill in the table for the perfectly competitive firm. Explain how you arrived at each number and what is the optimal output, price and profit of the firm?
What is the profit-maximizing P in the case that Godzilla and Macrosoft merge
Discuss the effect (increase or decrease) of an increase in the tax rate, t, on the equilibrium income Y* using the effect of increasing t on the equilibrium solution.
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