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Q1. How do expectations of a near-term policy reversal weaken fiscal policy based on changes in tax rates?
Q2. Why are government imposed "average cost pricing" as well as "nationalization of industries so pricing is at marginal cost" both second best outcomes to the markets of competition? P=MC=min ATC long run equilibrium?
Q2. Assuming velocity were stable, might an open economy with a fixed exchange rate follow a money growth rule successfully if capital moved freely across its borders?
Explain how will my family's consumption of omelets change this week and why. Chickens by the way do not respond to published prices in their decision as to lay eggs.
explain the difference among moving along a curve and shifting the curve. Assume a market is in equilibrium and the demand curve shift to the right, describe the market adjustment process in restoring equilibrium.
The manager is concerned that, despite the fact that the firm's competitors are comparatively small, collectively their annual revenue growth has exceeded 50 percent over each of the last five years.
Graph the Bens consumption function also find their households marginal propensity to consume.
Assume the government implements MC pricing regulation. Illustrate the effects of this approach on the diagram, clearly Demonstrate price charged, quantity produced, profits, deadweight loss.
Compute the HHI index for each of the following industries. Which industry is the most concentrated. An industry with five firms that have the following market shares.
How do your previous answers change in the special case where cash demand does not depend on the expected rate of inflation
Fully evaluate these regression results, including computation of t-statistics, adjusted R2, and the F-statistic.
Apply the decision-making model developed. What are the basic steps in all types of decision making processes.
Illustrate what will be real interest rate that clears goods market at G = 2000 and Y = 10,000. Conclude autonomous investment and marginal propensity to invest.
Can these equations be reliably estimated using OLS? Explain. Solve for the reduced-form equations of this model.
q.mirk labs is a pharmaceutical company that currently enjoys a patent monopoly in europe canada and the united states
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