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Q. 1. Why a favorable shock to the production function tends to reduce the price level, P. How could the monetary authority prevent this fall in P?
2. Assume that your household gets a machine that cost Lesley provides you with food. Illustrate what would that do to your labor supply? For credit, in your answer, discuss Illustrate what the income effect will be of the mew invention, also Illustrate what that will do to your decision to work. Also, discuss Illustrate what the substitution effect will be of the new invention, also Illustrate what that will do to your decision to work. (Hint, don't get bogged down by considering anything but Illustrate what this will do to your household. Also assume that you are the only household that has such an invention also that the economy as a whole won't be affected.)
3. Assume that your household is the beneficiary of a government program that matches any interest you earn. Illustrate what would that do to your consumption this year? Would you spend more, or less? In your answer, discuss the income also substitution effects of the program. (Hint, as above, this program is unique to you also the economy as a whole does not notice. In your answer, remember to discuss the multiyear budget constraint. Whenever doing so, remember that income effects come from changes in V while substitution effects come from changes in prices.)
if they use a regulation should they allow for pollution permits? explain the benefits and detriments of each form of control. what would you recommend?
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
Now assume a 7% real discount rate. What would the present discounted value of the project be? Should the project still be approved under this discount rate?
q.ceo of the cola king bottling company is hero nakamura it is a small regional producer operating in the pacific
Smith Co saw a reduction in quantity of widgets is sold, down to 900 units. What is cross elasticity of demand between two brands of widgets.
Hana's rounded one-year rate of return earned from her purchase of the Treasury notes is equal to illustrate what %.
q.if a firm faces a shortage of workers with very specific skills it may decide to undertake the necessary training
Now Assume the theater increases the number of its ads to 250. Should the theater increase its cost following this ad campaign.
Why could you say that supply-side economics is really more about after-tax wages and after-tax returns on investment than is about tax rates?
How does the standard product of labor change when the industry utilizes 81 units of labor.
Use a model of the money market to explain why changes in nominal or money GDP are associated with changes in interest rates.
If the interest rate is 8%, determine if the new column should be purchased. Solve by both present worth and annual cash flow analysis methods.
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