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A fall in the value of the US dollar against other currencies makes US final goods and services cheaper to foreigners even though the US aggregate price level stays the same. As a result, foreigners demand more American aggregate output. Your study partner says that this represents a movement down the aggregate demand curve because foreigners are demanding more in response to a lower price. You, however, insist that this represents a rightward shift of the aggregate demand curve. Who is right? Explain. (1 paragraph)
Five of ten people earn $0, four earn $100, and one loses $100. What is the expected pay off and variance of the pay off? There is a 50 percent chance of making $0, a 40 percent chance of making $100, and a 10 percent chance of losing $100. Calculate..
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero, Determine the profit maximizing ticket..
There is some evidence that during the 4th century in the Roman empire, public officials were paid in kind or “in equivalent prices”, instead of coins. What can be inferred from this?
An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $18,000 and is expected to have a useful life of 4 years. The salvage value at the end of the lift's useful life is estimated to be $4,000. determ..
You have a gross income of $355636 in 2014. Your filing status is single. You do not itemize deductions and you are allowed 1 exemption. What is your federal tax bill, assuming phase out of personal exemptions based on income?
the supply of paper is given by the following equationqs 5000p where qs is tons supplied per year and p is price ton.
How does the United States trade deficit, gross domestic product, the employment rate, and the inflation rate impact the economy and relate to the business cycle? Why is it difficult to predict changes in the business cycle?
Compare the risks of borrowing in the form of debt and receiving FDI in the form of equity. If debt is generally considered more risky to borrowers than equity, why is so much borrowing by foreign nations in the form of debt rather than equity?
Explain carefully how oligopolies can use product differentiation strategies to increase barriers to entry. Consider both brand name creation and product line proliferation strategies.
Suppose that firms in the chemical industry are allowed, free of charge, to dump harmful products into rivers. If this is the case in a competitive market, how will the price and output of the chemical products compare with their values.
Illustrate what are short- and long-term economic profits and costs associated with our current high federal government budget deficits.
As the exclusive carrier on a local air route, a regional airline must conclude the number of flights it will provide every week also the fare it will charge.
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