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True or False
1. If short-run equilibrium GDP is above potential GDP, prices will eventually rise.
2. A tax reduction shifts the consumption schedule downward.
3. A superior level of technology is an important reason the productivity of workers in rich countries is high.
4. A nation's capital consists mainly of stocks, bonds, and other financial assets.
5. Technological change was a major contributor to the productivity speed-up since 1995.
6. A decrease in disposable income causes a shift in the consumption function.
7. If firms are experiencing falling inventories, one can expect that firms will cut production.
8. President Bush in 2001 wanted a tax cut to stimulate consumer spending.
Why does the effect of a pay-as-you-go (PAYGO) public pension system on private saving depend on the reasons people have for saving? b. Summarize the conclusions discussed in class about the likely effect of the U.S. Social Security system on private..
The Federal Reserve may increase or decrease money supply depending on the economic condition. What policy instruments does the Fed use for the monetary policy?
Customers arrive at an automated coffee vending machine at a rate of 4/min, following a Poisson distribution.
Which of the following statements about Medicare and Social Security are false?
Mars and Hershey's dominate the domestic chocolate candy bar business. In this mature market; advertising by individual firms does little to convince more people to eat candy. Effective advertising simply steals sales from rivals. Briefly describe th..
(Cournot's duopoly game with linear inverse demand and a quadratic cost function) Find the Nash equilibrium of Cournot's game when there are two firms, the inverse demand function is given by P(Q) = a - 2* Q and the cost function of each firm is
Illustrate what is the total cost of finding a new plot of grass and getting y units of grass from it.
Which information culture can cause an organization to have a great degree of difficulty operating.
As real interest rate rises, the quantity of loanable funds supplied _____ and the quantity of loanable funds demanded _____
The client would like to know what output level should it select that will keep the competitor from changing its output.
Suppose that in a week the price of Greek yogurt increases from $5.00/lb to $5.25/lb. At the same time, the quantity of Greek yogurt supplied increases from 100,000 lbs to 125,000 lbs. What is the price elasticity of supply for Greek yogurt?
Cost-Curve Shifters The following graph shows the average total cost curve, average variable cost curve, and average fixed cost curve for Hilary's Pizza Parlor when the retail price Hilary pays for pepperoni, including sales tax, is $7 per pound.
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