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The circular flow mode shows that goods and services are households demand are supplied by firms in product markets.
1. Use a simplified circular flow of economic activity to show the graphical presentation of exchange for goods and services
2.Suppose the firms in the economy were to produce fewer goods and services .How do you think would affect house hood spending on goods and services(use the circular flow model to analyze this question)
What happens to the value of dollars in the market for foreign currency exchange?
With fixed government expenditures of G = 150 and fixed taxes of of T= 200. Assume that that consumers behave as described in the following consumption function: C= 150 + .75(Y-T)
Used Car Prices an automobiledealer finds that the average price of a previously owned vehicleis $8256. He decides to sell cars that will appeal to the middle60% of the market in terms of price. Find the maximum and minimumprices of the cars the..
How do you think it might have affected the economy over the past decade?
Also assume that the firm faces competitive input and product markets and that the two inputs are gross complements in production. Show graphically the long-run labor demand as the wage increases. What happens to long-run demand for capital? Be su..
Explain the concept of social deviance and provide examples of deviant behavior in social context
Calculate the percentage return on the security if the payoff to the security in one year is $1,000, $1,500, $2,000, or $2,500. (Note: This is the total amount returned to the investor, so you may just calculate the total return and not worry abou..
Suppose a depositor comes to the bank and withdraws $200 in cash. Show the banks new balance sheet assuming the bank obtains the cash by drawing down its reserves. Does the bank now hold excess reserves Is it meeting the required reserve ratio
if you borrow 3000 and pay back 3410 after 1.5 yearsa what is the interest rate charged if the payment period is 1.5
The price of basketballs is $90, the wage rate is $5, and the rental rate for capital is $10. What is the short-run profit maximizing level of labor demand if capital is fixed at 40 units What are the long-run profit maximizing levels.
An investor bought a tax-free provincial bond, at a cost of $1000 which will pay $50 interest each year for 20 years. The bond will mature in 20 years and return the original $1000. If there is a 2% annual inflation during this period, what real r..
Pool the data and compute the least squares regression coefficients of the model yit = a + ßxit + eit. Estimate the fixed effects model of (13-2), and then test the hypothesis that the constant term is the same for all three firms.
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