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Suppose my grand grandmother in 1909 put $100 in the bank account for me. The bank has been paying the compounded (annual compounding) interest rate of 5% per year. If I go and pick up this money now (that is in 2009) how much money will I get?
Consider a Cournot duopoly with the inverse demand p = 130 ? Q. Both firms have constant marginal and average cost MC = AC = 10. Find the Cournot-Nash equilibrium output and profit of each firm. Calculate the consumer surplus and DWL.
Government spending can raise Aggregate Demand and real GDP in the Classical model. Classical economists said that the velocity of money is very volatile. Classical Economists claim interest rates guarantee that savings will equal investment.
Do wages clear when the wage equals two. Do we know whether the equilibrium wage is higher or lower than two.
If total product is decreasing, marginal product is
What do temporary changes in the tax code do for incentives? Does this encourage long term planning? Should the government encourage long term planning? Should the Government use tax policy to change behavior?
There are two players 1 and 2. re are two cards: "High" and "Low". Player 1 chooses at random one card. Write a strategic form also find optimal strategy of player.
The country of G is a small, open economy. Suddenly, a change in world fashions makes the exports of G popular. Explain what happens to public and private savings, investment, net exports, the interest rate, and the exchange rate.
During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods.
If in an economy a $120 billion increase in consumption spending creates $120 billion of new income in the first round of the multiplier process.
Illustrate what will happen to GDP if taxes raise 100million when MPC is .75. Compute both tax also income multipliers.
Illustrate what should be the production level if fixed costs rose to $50,000 per month. Explain.
What is the impact of World Aggregate Supply (WAS) on the trade deficit and domestic employment? Referring to the Aggregate Supply and Aggregate Demand model (AS/AD) and the material in Chapter 11 what challenges does structural stagnation pose for m..
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