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Suppose that the representative firm needs to use its net worth as collateral to finance its investment projects. When net worth is high, the firm has more collateral and can invest more. When net worth is low, the firm has less collateral and must decrease investment. Using the AS and AD curves, explain why GDP will fall.
A monopolist faces the inverse demand curve P = 22 ? Q/(100z), where z is an index of quality. The monopolist incurs a cost per unit of c = 2 + z^(2). (a) How do increases in product quality z affect demand?
What is the opportunity cost of Josephine's trip to the wedding
The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent..
The demise of the U.S. auto industry would have a devastating impact on our national economy and specifically the economies of Michigan and Ohio.
Val-lok industries manufacture miniature fittings and valves. Over a period of 8 years, the costs associated with one product line were as follows: initial investment cost of $22,000 and annual costs of $20,000. Annual revenue was $24,000. What rate ..
GDP is significantly lower in your country than in the United States, Illustrate what might this imply.
Some observers believe that large U.S. government deficits will lead to higher inflation in the future. If this did happen, how could the PPP theory be used to forecast the impact of this higher inflation on the value of the dollar?
q1. on april 1 1996 taco bell the fast-food chain ran a full-page as in the new york times with this news in an effort
Calculate national income. if there were 80 million people in this country, what would the GDP per-capita be? if all prices were to double overnight, what would happen to the values of real and nominal GDP? nominal____ real gdp____
Briefly discuss the current poverty numbers in the U.S. What can we expect welfare policy to look like in the future? Need references with statistics; Please no copy and paste and please no plagiarism.
alculate the correlation coefficient. If Hammer selects a pair of pants at random, what is the expected price? What is the variance of the price?
In the Classical growth model:
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