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The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP, and indicate in each calculation whether you are inflating or deflating the nominal GDP data.
Instructions: Round your answers to two decimal places.
Nominal GDP Price Index(billions) (Year 2005 = 100) Real GDP(billions)
1968 $ 914.80 24.01 _____ $1978 2298.80 42.40 _____ $1988 5105.40 68.98 _____$1998 8798.50 87.51 _____$2008 14446.40 110.48 _____$
Andre walks Julia's dog once a day for $50 per week. Julia values this service at $60 per week, while the opportunity cost of Andre's time is $30 per week. The government places a tax of $35 per week on dog walkers. Before the tax, what is the tot..
Calculate the optimal amount of pretzels and soft drinks that minimizes this firm's costs and how many frames do you provide each month?
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At the end of their useful lives, both A and B may be purchased with the same cost, benefits, and so forth. If the MARR is 12%, which alternative should be selected based on the internal rate of return using the least common multiple approach.
Consider two goods, Gorillas (G) and Chimpanzees (C). Your utility function for gorillas and chimpanzees is given by U(G,C)=ln(G)+C. Gorillas cost $10 each, and Chimpanzees cost $4 each. You currently have $200 to spend.
Jim Duggan made an investment of $10,000 in a saving account 10 years ago. This account paid interest of 5½% for the first 4 years and 6½% interest for the remaining 6 years. The interest charges were compounded quarterly.
A large chemical plant is being planned with the capacity to produce 3 million pounds (lb.) of product annually. Raw-materials costs for the product are $0.45/lb. and utility costs are $0.25/lb. Overhead costs are 75 percent of the labor costs.
Assume that all other banks hold only the required amount of reserves. If First national decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase.
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