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Assume that investments is highly insensitvie to the interest rate. Explain what effects are on interest and income of an increase in government expenditure (G). Which compent(S) of aggregrate demand are crowded out (i.e., reduce)? Use IS-LM diagram to support your answer.
In a local shoe factory, machinery used is outdated and takes too much labor time to make a pair of shoes. Inexpensive imports are flooding the market and it is increasingly hard to compete with imported shoes on price. Briefly discuss steps the mana..
Identify the international organization and current marketing mediums. Explain how the international organization uses corporate webpages and social media. Identify the international organization’s competitors. Identify marketing challenges this inte..
There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,400 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,000 and has an efficiency ..
A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.
How does elasticity of supply affect the loss of economic surplus caused by a price ceiling?
Texas Instruments the early period of the industry decided to price its semiconductors below production costs the decision increased sales but resulted in near- term reduction in profits. Why did TI make the decision. What were the long term implicat..
Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $11, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $9. Based on this information, the firm is:
Illustrate what was the impact on the supply and demand of labor on one sector of the labor market. Explain the factors that affected labor demand and labor supply in the chosen historical example.
Consider the general equilibrium model with two sectors of production using different CRTS technologies as reviewed in class. Instead of assuming that both sectors are perfectly com- petitive, assume that sector X is a monopoly while sector Y is a pe..
Apple decides to reallocate resources by curtailing online ad budgets and investing heavily in scratch-resistant Sapphire, the material that differentiates iPhone from competitive brands. What is MOST LIKELY the reason for reallocation of resources?
Refer to the above graph for a profit-maximizing monopolist. At equilibrium, the firm will be earning:
“When countries specialize, total world output increases, and therefore, the potential for greater total world consumption also increases”. Do you agree or disagree with this statement? Explain and give examples.
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