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Which of the following statements about exports and imports is true?
A. Both imports and exports are added to nations GDP
B. Both imports and exports are subtracted from nations GDP
C. Imports are added to nations GDP; exports are subtracted
D. Exports are added to nations GDP; imports are subtracted
E. Neither imports nor exports are included in nations GDP
What factors give rise to increasing returns to scale and decreasing returns to scale? Define and then derive the expression for the marginal rate of technical substitution.
According to the theory of rational expectations, individuals will respond to expansionary monetary policy by:
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We are interested in checking if larger cities have higher rates of influenza than we would expect just from them being larger (Does a 1% increase in population result in a more than 1% increase in Influenza). Compute the t-statistic and determine if..
Suppose that only data on in action were published but not on claims for unemployment. What would be a reaction of the USD/EUR in that case.
Two firms compete in quantities, selling identical goods, facing the demand function P(Q) = 130−q1− q2 where qi is the output level of firm i. Assume that firm 1 is more efficient than firm 2, MC1(q) = 10 and MC2(q) = 20. Find the NE quantities of th..
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A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,738 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a use..
Draw a Keynesian cross graph and assume that macro economy starts and ends at equilibrium. Label the initial aggregate demand line AD0, Then show what happens in the diagram when a rise in consumer wealth raises C in your diagram. What is the initial..
An industry consists of three firms with sales of $200,000, $500,000, and $400,000. Compute the Herfindahl-Hirschman index.
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