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Suppose New York wants to build a new facility to replace Madison Square Garden. Assume that the cost of building a new arena in midtown Manhattan is $2 billion and that all the costs occur right away. Also assume that New York will receive annual benefits of $100 million for the next 30 years, after which the new arena becomes worthless. Does it make financial sense to build the new facility if interest rates are 5 percent?
Studies indicate that net exports and net capital outflows tend to be equal. Why are net exports and net capital outflows tend to be equal? How does an increase in the price level change interest rates? How does this change in interest rates lead to ..
An increase in aggregate demand is most likely to be caused by a decrease in: (a) the wealth of consumers. (b) consumer and business confidence.
Assume that the factory's sole objective is to minimize the total cost of reducing emis- sions of these three pollutants to the new government standards by using any combina- tion of the six pollution abatement techniques. Set this up as an LP pro..
Draw short run firm and industry competitive equilibrium for a perfectly competitive gator-farming industry before the number of alligator farms in Florida doubled. For simplicity, assume the gator farm is earning zero economic profit.
Do Okun's law and the short-run Philips curve appear to be related concepts? Would a breakdown in the Okun's law relationship strengthen or weaken the case for active policy making?
How did the 1971 law that banned cigarette advertising on television solve the prisoners' dilemma for cigarette producers?
Draw the demand curve for x with Px on the vertical axis and x on the horizontal axis.
With an aid of diagram (consist of both demand & supply curves) show & explain what happens to the equilibrium price & quantity when:1. the preference for pepsi suddenly increases 2. the price of milk has increased which increased the cost of ice cre..
Suppose that low-fat milk and cream are complements in production. A decrease in the price of cream will result in _________
Discuss the possible reasons ofeducational inequalities and also suggest changes in education policy that mayachieve a more equitable distribution of education.
A country currently imports automobiles at $8,000 each. Its government believes that, given time, domestic producers could manufacture autos for only $6,000 but that there would be an initial shakedown period during which autos would cost $10,000 to ..
Suppose the wage rates of workers are based on the expected price level. If there is an unexpected increase in AD, it will cause the actual price level to increase. Then workers should raise their expected price level and negotiate a higher wage r..
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