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The U.S. economy experienced large trade deficits in the 1980s and 1990s and tremendous economic growth in the mid- and late-1990s.
A. Trade deficits have an effect on inflation. Explain the relationship between trade deficits and investment verbally and mathematically using the concept of the balance of payments.
B. Explain verbally the relationship between investment and long-term economic growth and describe the relationship graphically in an AD/AS graph.
Compute price elasticity of demand and supply at the equilibrium price and quantity. Price elasticity of demand is equal to___ _ and price elasticity supply is equal to ____. On the same graph above, show the effect on equilibrium price and quantity ..
Suppose you are studying the market for shoes. Two events take place simultaneously. First, price of leather decreases, and second, consumers' income increases. What will happen to the equilibrium price and equilibrium quantity of shoes?
The marginal revenue product of labor for an electronics firm is MRPL = 50 - L, where L = the number of workers. If the wage of electronics workers is $20 per worker, then how many workers will the firm hire?
Include in your discussion your assessment of this organizational architecture structure and suggestions on how it might be improved.
Using the current specifications, a new road will cost $1.5M initially, need $120K in annual maintenance, and need to be resurfaced every 10 years for $1.1M. If the highway department's interest rate is 6%, which specification is preferred?
Assume that you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 un..
A Manufacturing Company has hired an economist to evaluate its financial situation. She explains to the board of directors that the company is making zero economic profit. Should the company go out of business?
Confidence on the demand for money is log M=14.666+.021logC-.036log r m- real money balance c consumer confidence r is interest rate paid on bank deposit. Based on this study How 5% increase impact the demand for money a .Increase or decrease 1.8%, d..
When the actual Lorenz curve is as far away from the 45-degree line as possible, there is. One way to reduce the degree of income inequality is to. The Gini coefficients for countries A and B are 0.25 and 0.30, respectively. We can definitely conclud..
The assignment is to create your own firm, explain, chart and graph all of the necessary information in the production function. This can be anything that you like. What is the name of the firm? What do you produce? Where is your market? You must..
Illustrate what would happen to the profits CPI makes via their toothpaste division.
Two identical firms, Firm 1 and Firm 2, compete in quantity in a market where inverse demand is P(Q) = 100 − Q and there exists a constant marginal cost of 20 per unit. Find the Cournot equilibrium. Find the response functions q1(q2) and q2(q1)
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