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Consider the market for wheat. Suppose that productivity growth increases the supply of wheat. If the price elasticity of demand for wheat is relatively inelastic, then the price of wheat will fall by a relatively ____ amount. (large or small)
q. in class we discussed the idea that small farmers are sometimes price takers i.e. the price of wheat are set in the
Suppose Mary’s utility function for two goods X and Y is given by: U(X,Y) = 2X1/2Y1/2. Suppose consumption bundle A consists of 10 units of X and 10 units of Y, and consumption bundle B consists of 20 units of X and 5 units of Y. Consumption bundle A..
Application Coal mining believes that it can increase labour productivity and, therefore, net revenue by reducing air pollution in its mines. Explain how much pollution reduction should Appalachian Coal Mining Undertake.
The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that the company’s many divisions will remain..
Please describe the policy suggestions you might have for the Federal Open Market Committee if you were appointed adviser to the Federal Reserve Bank. Imagine the country is experiencing economic slump and the FOMC is not sure what monetary policy ac..
Illustrate what is the change in quantity of money that will eventually result. Assume that the currency drain in 0.15 and the desired reserve ratio is 0.05, and show your calculations
Ilustrate what is the marginal product of capital and labor. Does the answer depend on how much labor and capital are used.
In times of a struggling economic situation, determine the key steps that the Federal Reserve should take to help stabilize the economy. Next, explain how your proposed steps will affect money supply, interest rates, inflation rate, aggregate demand,..
determine either the demand for student employees by the restaurant would increase, decrease, or remain unchanged.
Suppose you own a home remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing-cost industry.
What is the effective interest rate of an investment if the nominal annual interest rate is 2.09% and it is compounded semi-annually? Express your answers as a percent to two decimal places?
If velocity ?(V) and aggregate output ?(Y) remain constant at $4 and $1,000 billion?, ?respectively, what happens to the price level ?(P) if the money supply? (M) declines from $425 billion to $350 billion?? Originally, what is the price level?
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