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Suppose that good X is on the horizontal axis and good Y is on the vertical axis. Good X costs twice as much as good Y. Ann chooses a bundle that takes up all of her budget. The MRS of X for Y at this bundle is equal to 2. Please illustrate this situation using a budget constraint and an indifference curve.
If a central bank reduced inflation by 2 percent age points also to made output fall by 3 percent age points for 2 years
In the simple monetary policy rule, a large m means that the central bank is aggressive fighting inflation. If the monetary policy parameter m changes, there is a movement along the AS curve. When the Federal Reserve lowers the nominal interest rate ..
Describe a pricing decision your company has made. Was it optimal? If not, why not? How would you adjust the price? Compute the profit consequences of the change.
Policy analysts in the Department of Natural Resources have estimated that the marginal benefits from water pollution abatement are given by the function MB ¼ 0.90 À 0.03A, where A is a measure of the abatement intensity. Determine the optimal level ..
Explain why does price equal marginal revenue for the purely competitive firm. what is the relationship to the demand curve for the firm.
Suppose James has utility over wealth given by u(w) = w 1 2. Putting utility on the y-axis and wealth on the x-axis, use a graph to show why James would rather have $100 for sure instead of a gamble where he gets $20 20% of the time and $120 the rest..
Explain the importance of variation to health-care organizations and answer the following questions. What might be the key processes for health-care organizations? What are the potential common causes of variation that would have an impact on the key..
suppose a consumer prefers a sandwich with 2 slices of bread and 2 slices of ham. Assume that price per slice of bread is .10 and per Ham is .25. The consumers budget for lunch is 3.50. Write the budget constraint and show a few indifference curves.
The machine will be operating 2,500 hours per year with annual maintenance and operating costs of $6,000. Using an interest rate of 15%, what will the hourly cost be to run this machine?
Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost..
Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loanable ..
q.1. get all of the monthly data for the tsx composite index cansim series v122620.a. present a time series plot of
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