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What assumptions do we make in the long run regarding the velocity of circulation and the relationship between real GDP and potential GDP? (MV=PY)
In uncertain times, especially when the economy is experiencing a downturn, consumer spending tends to decline also savings rates tend to rise
Your disposable income is $100,000 a year. You face a 50/50 chance of losing $10,000 from an illness requiring surgery and value your income to the utility function U=income^0.6. What is your expected income, what is your certainty equivalent, what i..
Elicidate the Consumption and Government Spending equal to what. Would you expect to find out a few relatively large firms or many relatively small company.
If the original supply curve of cocaine on the streets was horizontal, what is the net effect of police activities on the market for crack in this city. Compute the value for p that prevails before police intervention in the market.
the company you work for asks you to recommend whether their mercedes truck should be replaced now or kept in service
Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate? b) Explain what is meant by a built-in stabilizer and give two examples.
Conclude whether there is an arbitrage opportunity in the option market, using the put-call parity.
A fungus destroys 25% of the banana crop in Central America and the number of immigrant workers who pick apples increases. What happens to the supply or demand for apples?
Consider the following panel data fixed effects regression model: Yit = B0 + B1Xit + Y2D2+ Y3D3i + +...Y4Dni + eit
Illustrate what is the estimated KWH also illustrate what is the interval which would contain 95 percent of such estimates.
Under what conditions would firms be likely to support an industry-wide advertising ban. Please provide a few examples.
John lives for three periods. He is currently considering two alternative education-work options. Alternative 1: he can start working immediately, earning $100,000 in period 1, $110,000 in period 2, and $120,000 in period 3. Alternative 2: he can spe..
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