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Suppose you own a home re-modelling company. You are currently earning short-run profits. The home re-modelling industry is an increasing-cost industry. In the long run what do you expect will happen?
Your firm's cost of production? Explain
Decide if the values of the goods produced are included in the 2006 GDP and explain your reasoning.
Discuss three automatic expenditures in the federal budget. What is the difference between discretionary fiscal policy and automatic stabilizers?
Indicate whether each of the following statements is true or false and explain why.
Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?
Discuss how the aggregate expenditure function shifts in response to changes in each of time following variables:
Overview of the project's objectives and scope
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
What is the amount of loans from rest of the world? What is the current account balance? What is capital account balance?
For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity.
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