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The annual income from a rented house is $12,000. The annual expenses are $3000. If the house can be sold for $145,000 at the end of 10 years, how much could you afford to pay for it now, if you considered 18% to be a suitable interest rate?
Elucidate what it means that the preference relation has a utility function representation,
If the government equally increases pending and taxes by 1000, income will be increased by how much and what should the government do to increase income by 400?
Explain the difference among comparative advantage and absolute advantage. Explain how economies benefit with specialization and trade.
Assume you borrow $1 million. According to MM, Illustrate what fraction of the firm's equity will you need to sell to raise the additional $1 you need.
Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion i..
Illustrate what are your preconceptions of economics. Do you think economics will be a relatively difficult course.
Congress is considering a tax credit program for those who purchase energy-efficient appliances. Proponents of the program have said that $400 million will be given directly to taxpayers and argue that this will have an economic effect that is gre..
Using the static classical AD/YP model, demonstrate the effect of each of the following changes.
Aggregate Demand & Supply Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither or both. Which curve shifts, & in which direction
Provider B does not have a fixed service fee but instead chaarges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qd= 150-50P is the price of the minute?
An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there.
Draw an AS/AD diagram which shows what happens if strong growth in AD has pushed actual RGDP to a level above potential (full employment) RGDP.
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