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Q1. Jeremy derives all of his utility from consuming milk shakes; he devotes hi entire $20 allowance to milk shakes each week. Suppose the price of milk shakes rise from $2 to $4. Compute Jeremy's Compensating Variation and Equivalent Variation.
Q2. Sets out the aggregate demand and aggregate supply schedules in Japan. Potential GDP is 600 trillion yen. What is the short-run macroeconomic equilibrium? Does Japan have an inflationary gap or a recessionary gap and what is its magnitude?
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
Willie will receive all his operating expenses, and in addition will receive $2,000 each year for the decline in value of the automobile.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Steps that a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Find the equilibrium price and quantity algebraically. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve.
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
Suppose that the only input used in the generation of solar energy is sunlight
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
When would it make sense for a factory that is losing money to remain in operation
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