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Q1. Draw an AD-AS diagram representing the U.S. economy in a recession. Also draw a diagram of the U.S. labor market in the recession. Illustrate on the diagrams and explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
Q2. Bond A pays $8000 in 20 years Bond B pays $8000 in 40 years assume these are zero coupon bonds which means the $8000 is the only payment the bond holder receives if the interest rate is 3.5% what is the value of the bond today? which bond is worth more? Why? if interest rate increases to 7% what is the value of each bond? which bond has a larger % change in value?
suppose that new producers enter the market and the supply increases to: Qs = -500 + 10P. What is the new equilibrium price and output level? (g.) Show these changes on the graph
If GDP is increasing by 3% every year Explain how long will it take GDP to double. Given the same conditions above, Explain how long will it take Every Capita GDP to double if the population grows at 2%.
The investors in exercise 2 are surprised by firm's performance in year 5. Instead of being $20 million, the firm's profits are $40 million. What happens to firm B's stock price in year 6 and 7?
Converse briefly its relationship to microeconomics also other related fields of study such as finance, marketplace also statistics.
If average total cost of producing wheat is $8 and cost of wheat is $6, illustrate what would you advise farmer to do.
A company's cash sales for the month are $200,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow.
q.luella has to pay an interest rate of 50 to borrow. she only gets an interest rate of 5 if she lends. she is
A company has to decide weather to lease or buy a crane for 20 Years, please calculate both seperatly and show which one is the better option
Elucidate which of the following events would cause the price differences in these letters to get smaller.
Illustrate what might cause the world interest rate to rise.
Discuss and post what solution might there be for these people who lack access to computers. Recalling that the definition of perfect competition refers to a market with many buyers, among other factors, thus, how may these people gain access to the ..
it can sell its output for $25 each. Illustrate what is break-Explain how your work both graphically and algebraically.
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