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Q1. Suppose a consumer has an income of $500 and faces prices Px=5 and Pz=10. Write the equation for the budget constraint.
Q2. Suppose a given country experienced low and stable inflation rates for some point of time, but then inflation picked up and over the past decade has been relative high and quite unpredictable. Explain how this new inflationary environment would affect the demand for money according to portfolio theories of money demand, What would happen if the government decide to issue inflation protected securities.
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.
Managerial economics and should include other criteria such as social responsibility and ethics. Remember to cite your authority and be careful not to plaigerize.
Distinguish between the two types but knows the probabilities of each type. What would be the result in this market for loans.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
The law of demand states that other things equal
Calculate the Golden Rule level of capital per effective worker and the saving rate associate with this steady state.
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the cost of mowing the second Lawn is $12, and the cost of mowing the third lawn is $15.
A county is considering using a piece of park land for one of two alternative recreation projects.
Discuss the policies that Keynes as well as Hayek supported regarding how federal government ought to manage economy. What are differences between each school of thought.
What would the' peso- dollar exchange rate be if purchasing-power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose.
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