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Q1. Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run. If price heating oil increased from $1.8 to $2.2 per gallon, illustrate the percentage change to quantity of heating oil demand in the short run?
Q2. We have Desired Investment function= 380-400r and Desired Savings Function= 300+600r now we have a new desired investment function=350-400 and same desired savings function. Name four reasons why the desired investment function would change the way it did?
What happens to the money supply, interest rates, and the economy if the Federal reserve is a net seller of government bonds?
Illustrate which of the following is an example of the legal-regulatory environment surrounding advertising also promotional activities of businesses.
Calculate the percentage growth rate in real GNP per capita in each of the years 1996 through 2002 from the previous year, using the definition of growth rate.
Illustrate what entity establishes a cost ceiling and does it require government sanction for violators. Will it result in a surplus or a shortage.
What is the impact of a tax cut in an economy operating under a flexible exchange rate regime on household spending, interest rates.
Apply the coefficient-of-variation decision criterion to these alternatives to find out which is preferred by the angel investor, assuming that he/she is risk-averse.
The market demand also supply functions for a raw chocolate are estimated.
Discuss a situation in which both parties entering into a contract could benefit from slightly ambiguous language contained in the agreement.
Calculate the value of the US Balance of Payments and indicate whether it is in a surplus, deficit, or equilibrium.
The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000.
A also the new allocation B. Include indifference curves that is consistent with this trade being optimal for both Michael also Tony.
In 2005, conditions in Iraq led to a sharp drop in consumer confidence and a drop in consumption. Assume that the Fed holds the money supply constant, tell a story and predict the effects on the equilibrium levels of aggregate output (Y) and the inte..
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