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In order to sustain economic growth, which is more important - total factor productivity or capital accumulation? Explain briefly
Use the red line (cross symbol) to draw the valuation, V, across the market. Use the orange line (square symbol) to draw the full price line for those who purchase from firm 1, i.e., the line showing the price paid by a consumer plus transport cos..
Suppose the economy is slumping into recession and needs a fiscal policy boost. Voters, however, are opposed to larger federal deficits. What would policy-makers do?
If the demand for a domestic currency decreases in a nation using a fixed exchange rate system, what must the central bank do to keep the currency value steady.
Using the values of DOL calculated above, calculate the profits for a 10% increase and 10% decrease in quantity.
Give a graphical representation of the trend in inflation and unemployment in terms of unemployment for the period 1983 - 2011. Comment outcome.
What do we mean by regulartory capital in the context of banking?
A change in the real money supply can result from a change in nominal money supply through Federal Reserve policy.
Explain how much of input 2 does it use. Illustrate what is the most that it is willing to bribe an inspector to allow it to use another unit of input 1.
Knowing their APR is 14.5% and assuming they would no longer add more debt to the card, what would their payment need to be in order to pay off the balance of the card in two years?
Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production What problem is posed by any comparison over time of the market values of various total outputs
Assume there are two firms, A and B, buying labor in a market. They each have a constant level of VMP = 15. They face an upward sloping supply curve, W = 2L, where L is the sum of the supply of labor purchased by firm A, LA, and by firm B, LB.
Markets are a very good way to organize economic activity in our economy. Why do we classify price floors and ceilings as a type of market failure and why does the government need to get involved in these types of markets?
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