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How to calculate problems like PAE = 3,500 + 0.7Y - 10,000r when the interest rate is 4%, then solve for short-run equilibrium output, then determine what actions the Fed will take to address the output gap relative to Y*.
The recent merger of US Air and American Airlines received both national and local attention. The US Department of Justice contested the merger on the basis it would produce harmful monopoly-like behavior in the airline industry. Develop an argument ..
Enron will be an example of a dysfunctional company for many years to come. It was clearly a company riddled with fraud and excess.
Suppose that an industry has high fixed costs to enter but, other than that, is competitive. What will be the effect of the high fixed costs to the number of firms in the industry? To the firm size ? Is marginal cost higher or lower for a firm with h..
In the foreign exchange market, the quantity U.S. dollars demanded is a function of:
A firm has a demand function P = 200 – 5Q and a cost function: AC=MC=10. What price, quantity, and corresponding profit occur if this a purely competitive market? Determine the optimal price, quantity and economic profit for the firm if it is a pure ..
Suppose that George operates a laundromat which requires two inputs, capital (K) and labor (L). Suppose George desires to produce 90 units of output, the cost of capital is $1 and the cost of labor is $27. What is his optimal input combination?
First, draw the AD, SRAS, LRAS diagram for the U.S. economy starting at the long run equilibrium. Label your graph thoroughly. Second, show on your diagram what happens to the U.S. economy when the U.S. government lowers income taxes across the board..
Suppose that the price of product A decreases from $27 to $14 and, as a result, the quantity traded of A increases from 175 to 210, the quantity traded of B increases from 65 to 100 and the quantity traded of product C falls from 505 to 400. What is ..
Consider the AS-AD model with money, where money is neutral. Suppose that half of the banks in the economy magically disappear. What will happen to the supply of credit? Suppose that the central bank responds to this by keeping the supply of money fi..
A local department store puts out products at an initial price, and every week the product goes unsold its price is discounted by 25% of the original price. If it is not sold after 4 weeks, it is sent back to the warehouse. Let W denote your willingn..
Should the north dakota access pipe line be constructed according to its present design, which takes its close b the standings rock reservation and underneath the Missouri River? Write an argument in favor of your point of view using at least three o..
In defining development to include more than just the growth of per capita income, there is an implicit assumption that the growth of per capita income alone is not sufficient to guarantee the reduction of poverty and the growth of self-esteem. Is it..
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