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Q1. Explain why each of the following statements is True, False, or Uncertain according to economic principles.Suppose the economy is currently operating with a recessionary gap. If the government does nothing with regard to discretionary policy changes, national income will never recover to its potential level.
Q2. In 1947, real GDP (2005 base) in the US was 1852.7b, the GDP deflator was 13.753, and M2 was $146b. In 2012, real GDP was 13591.1b, the GDP deflator was 115.378, and M2 was $10003.4b. How well does the quantity theory with constant velocity accurately predict the annual inflation rate over this period? What would the annual percentage change in velocity have to be on average for the quantity theory to hold?
If a random sample of 400 clients is elected, what is the probability of Type I error using this decision rule.
At the equilibrium values, determine the price elasticity of demand. What does this number tell us?
Illustrate a firm in monopolistic competition that does not make a profit but rather a loss. Now illustrate how firm exit will change demand in the long run, allowing at least some firms to break even.
Elucidate how do the firms decide how much to charge. Use the Cyberlibrary or internet search engines to pick your own example of price discrimination.
Critically describe the impact of the financial crisis on the automobile industry's production and trade. Analyze the support measures that were taken by the governments to support the automobile sector.
For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising.
At the end of the one-year contract, what will his "friend" offer John as the price for an extension of the deal?
Illustrate is the income elasticity of demand for yo-yos. At what price will total revenue realized from their sale be at a maximum.
Fed's policies both in terms of the positive also negative consequences of such policies also in relation to the Keynesian also classical theories.
Can citizens who speak an official language or than majority language receive official personal documents in that language. What arrangements have been made in this respect.
q.suppose the market demand for apples is given by qd 1600-100p and there are two firms operating in it each with a
Austerity measures implemented in several European countries will mean lower level of government expenditures for these countries? For these countries, this would cause
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