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Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:
A. The expenditure plans of agents exceed the supply of output by firms
B. The earning plans of agents fall short of what they earn in the economy
C. The currency appreciates in the foreign exchange market
D. A and B
What are the equilibrium price and quantity. If demand increases to D', what are the new equilibrium price and quantity. What happens if the government does not allow the price to change when demand increase.
A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $190 million in the first year, but will decline by $2 million every year for the next 3..
Suppose that the price of the firm’s product is $20. What are the firm’s marginal and average revenue product functions? What is the firm’s short-run demand function for input Z.
A woman with a taxable income of about $100,000 has a federal incremental tax rate of 26% and a provincial incremental tax rate of 12.29%. What is her combined incremental tax rate?
The no-trade equilibrium in Foreign. How do the relative no trade prices of computers compare in Home and Foreign.
Faraday issued preferred stock with a $4.80 dividend per year. If you buy the stock for $60, what is your return?
Economic theory would suggest that the profitability of an industry would be
Are innovative product and service offerings ethically neutral? Consider Napster and the intellectual property issues associated with swapping music over the Internet as an example to begin the discussion.
Use the information in the table to calculate total revenue, marginal revenue, and marginal cost. Indicate the profit-maximizing level of output. If the price was $3 and fixed costs were $5, what would variable costs be? At what level of output wo..
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Trailer Company has asked its financial planning committee to analyze short- and longer-run pricing and production levels for the new hawk II trailer. What short-run price and output combination would be recommended if the committee decided that Skyh..
What will happen if the growth rate of the money supply exceeds the growth rate of GDP? What will happen if the growth rate of the money supply falls short of the growth rate of GDP? What will happen if the velocity of the money supply decreases?
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