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Productivity declines may worsen recessions by causing unit labor costs to:
a. rise, thereby resulting in falling profits and lower investment spending
b. rise, thereby resulting in greater retained earnings by firms
c. fall, thereby creating incentives for government intervention
d. fall, thereby reducing consumer spending power
Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditu..
For a firm to be economically efficient from society's point of view, it should produce at the point at which:
Prove that inferior goods (goods with a negative income effect) have a backward bending income consumption curve. Prove that giffen goods have a positively sloped demand curve and a backward bending price consumption curve. Comment about substitution..
q. consider an economy where consumers utility function is given as uclc-12l2 . where c is consumption and l is labor.
When quantity supplied increases at every possible price, we know that the supply curve has
A portfolio has an average return of 12.4 percent, a standard deviation of 15.8 percent, and a beta of 1.35. The risk-free rate is 2.6 percent. What is the Sharpe ratio? Your portfolio has a beta of 1.17, a standard deviation of 14.3 percent, and an ..
Decision making in a business environment requires an understanding of cost and revenue data. This includes an understanding of marginal and incremental analysis
demand formula is given as p150-3q and we only have 40 tickets to sell and that the mc0 and we suppose to figured out
q.i would like to figure out the relevant cost in some cost flight operation salaries of flight crew fuel maintenance
What is rent seeking and how does it differ from the kinds of profit maximization and profit seeking that we discussed in previous chapters?
The total utility for water is higher than the total utility for diamonds. You can explain the diamond-water paradox (that diamonds are expensive but not necessary for survival / not as useful, while water is inexpensive yet necessary for survival / ..
In 1990, the Supreme Court of the United States found which Texaco had indeed violated antitrust law. Which law do you think Texaco was found guilty of violating.
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