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Explain why firms that provide legal services or dental services only require little physical capital?
Illustrate what were some of the major contributing factors and how did they combine to cause the recession. How were you affected by it.
1. Suppose that you learn that a friend recently received a substantial inheritance. Your friend was given two choices: 1) wait 10 years and receive the inheritance or 2) receive the present value of the inheritance (using a 3% discount rate) now...
Sprint acted as a well-managed business that takes the actions necessary to remain competitive in a very competitive marketplace.
Briefly describe the Nash equilibrium concept. Is there a Nash equilibrium strategy for each firm? If so, what is it?
Suppose that the money market is initially in equilibrium and that money supply is then raised. Explain the adjustment toward a new equilibrium interest rate.
Ellucidate explain the broad decline in house prices that occurred in those years. Is the market currently in equilibrium.
In a small European country, it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million.
Two indicators of economic development include Gross Domestic Product (GDP) and the Human Development Index (HDI). What is the difference between these two ways of measuring levels of economic development?
Describe the production possibilities curve implications for an economy that doesn’t devote current resources towards the production of capital. Be specific in your answer.
A monopolist sells in both Milwaukee also Cleveland and has identical marginal price of 8 in each market.
Explain what happens in each graph (A, B, and C) when an economy is moving from a recession (point a) back to full employment.
Consider a one-time increase in the money stock by 3% relative to trend. Money supply initially grows at a constant rate of 2% per year. For one year, the money stock grows by 5% instead of 2%, and then returns to 2% growth.
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