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Part A
1. Describe three (3) ways we can use macroeconomic analysis, with one (1) original example for each way.
2. You are running a small yard maintenance business for the summer. What do you expect to happen to the number of yards you can maintain in a day as you add workers if you don't purchase more capital equipment (like mowers and leaf blowers)? Provide at least two (2) supporting facts to support your response.
Part B
1. Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market.
2. Suppose you were interested in increasing technological progress in your country. Suggest two (2) ways to do this.
Explain why a short run average cost curve only touches the long run average cost curve at one point on the long run average curve. define clearly the concept of returns to scale.
Which of the following is a long-run macroeconomic policy goal? If the CPI was 132.5 at the end of 2003 and 140.2 at the end of 2004, the inflation rate over these two years was
A price-discriminating monopolist of the 3 rd degree sells output in 3 different markets. Some, but not all pairs on the 3 linear market demand curves are given below.
The similar same set of price quantity combinations are utilized to compute the price elasticity of demand
The historical returns on a balanced portfolio have had an average return of 12% and a standard deviation of 18%. Assume that returns on this portfolio follow a normal distribution. Use the empirical rule to answer the following questions. What p..
What are the major fiscal policy positions of the Republican and Democratic parties? What do the differences between their positions mean for public policy?
Illustrate the infant industry argument for putting up barriers to imports. What are its merits and weaknesses.
What would be the consumer buying response to Coca-Cola if the price of Pepsi doubled If the prices of Coca-Cola and Pepsi remained constant, what would be the typical buying response to these products if consumer income was reduced by 30%
Suppose you have just joined a regional investment banking company. They have offered you two different salary arrangements.
Imagine that the firm must choose one of three quality levels: z = 1; z=2; and z = 3. Which quality choice will maximize the firm's profit?
An economy can be stimulated by printing more money. Illustrate what are the dangers of doing that. Inflation can be decreased by reducing the money supply.
The variable rdintens is expenditures on research and development (R&D) as a percentage of sales. Sales are measured in millions of dollars. The variable profmarg is profits as a percentage of sales. Using the data in RDCHEM.RAW for 32 firms in the..
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