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Consider the application of the IS/LM model to the Great Depression. In 2002, Ben Bernanke was speaking for the entire Federal Reserve Bank and admitted to mistakes in the policy response to the economic downturn in the 1930s. Recall that the data shows strong declines in output and the interest rate and some declines in the money supply and the price level.
Plotting the supply of labor In Denver, 140 people are willing to work an hour as hostesses if the wage is $10 per hour. For each additional $5 that the wage rises above $10, an additional 35 people are willing to work an hour. What is one explanatio..
Which industry is more highly concentrated: one with a Herfindahl index of 1,200 or one with a four-firm concentration ratio of 55 percent?
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? What are the different price points
Last year a very severe ice storm hit the north counties of New York state, and the states of Vermont and Maine. Electric poles were down and no one had power for days. It was reported that the price of kerosene heaters skyrocketed and the number pur..
The guest speaker sat down to a warm round of applause. Jim Hoffman was a well-known local consultant with a seemingly unlimited repertoire of humorous stories and anecdotes. And his subject, “The Dangers of New Product Introductions” always went dow..
Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the..
If I sell 22,000 units and my annual costs are technology=$5000, postage & handling=$1000, Misc=$3000, inventory=$2000, equipment=$4000, and overhead=$1000. What would my monthly costs be if my fixed costs are technology, equipment, and overhead.
If the market price stays the same, but the fixed costs of the firm increase so that the total cost function becomes: TC = 18 + 17 Q - 4 Q2 + Q3 What will be the profit-maximizing level of output? Will the firm earn a profit, and if so, how much?
If the demand for a commodity is elastic, an increase in the price of the commodity. Assume the cross price elasticity of demand for products A and B is positive. Then, the products must be
Consider an economy described by the production function: Y = F (K, L ) = K1/2L1/2. Find the per worker production function. What savings rate is necessary for the economy to reach this consumption maximizing steady state?
You’ve just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following: There is a 70% chance that profits will increase by $100,000. There is a 20% chance that profits..
Explain and illustrate graphically relationship between price consumption curve of a normal good and a consumer's demand curve.
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