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The classical economists held that the rate of interest would equate planned investment and planned saving, so that all saving would eventually be invested.TrueFalse
The value of the marginal propensity to consumea. can exceed 1b.is always between 0 and 1c. can be less than 0d. is always greater than 1
The aggregate demand curve is the sum of individual demand curves in the economy.TrueFalse
Constant-dollar GDP and real GDP are the same thing.TrueFalse
In national income accounting, grain fed to a hog at a commercial hog farm is considered a(n)a. final goodb. intermediate goodc. consumer goodd. capital consumption allowance
Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate is..
Steel is labor intensive and rice is land intensive. According to the long run Heckscher-Ohlin model what happens when these two countries move frome no trade to free trade? Wages in France's rice industry? Wages in France's steel industry? The pr..
Airframes are produced according to the production function: \(Q = (L^{1/2} + K^{1/2})^{2}\) Suppose the price of labor is $10 per unit and the price of capital is $1 per unit. Find the cost-minimizing combination of labor and capital to produ..
There is a safe bond B which has 4 years before maturity and pays a coupon of 12% at regular annual intervals and a face value of $100 at maturity. What will be the current price of bond B.
Show that, with a linear demand curve, the imposition of a per-unit tax on a monopoly will cause price to rise by less than the tax. Would this be true for a constant elasticity demand curve?
Explain why might intangible resources such as human capital and intellectual assets be a more likely source of sustainable competitive advantage than tangible resources.
Explain why trade liberalisation has the same effect on an economy as an increase in the aggregate productivity of an economy (i.e. that the average output per worker increases).
Production of each unit of output Q leads to a marginal external cost of $50, caused by pollutants emitted by the production of Q. If we add this marginal external cost to the market information, the equation for the social-cost supply curve is gi..
Hinduism, Confucianism and Buddhism are three of the world’s great belief systems. Compare and contrast their impact on the societies that embraced them.
Please provide a thorough definition for each theory and explain all the components and fundamental conclusions of each!
question 1. explain the difference between a closed shop and a union shop. are either or both shops legal?question
Describe the Soviet Rapid Development Model
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