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Suppose the economy produces only two goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the economy’s output combination of C and K goods with price controls versus the economy’s output combination without price controls. Explain your reasoning.
Compute the elasticity of demand when the price of a deluxe cheeseburger raises $2.50 to $3.00 which causes sales to fall from 175 deluxe cheeseburgers each day to 125 deluxe cheeseburgers each day.
Illustrate what must the saving rate be to achieve the Golden Rule level of capital.
q.your bike is worth 200 and if you park it outside on campus there is a 10 chance that it will be stolen.a. what is
Advanced analysis) Answer the next question(s) on the basis of the following consumption schedule: C = 20 + .9Y, where C is consumption and Y is disposable income. REfer to this data. At an $800 level of disposable income, the level of savings is:
A firm is currently producing 40 units of output. At this level of output produced: Is this firm making profits or losses? How much? Are they maximum profits? Why?
Mallory consumes a bundle of candy and cookies, spending all of her income. The price of candy is $1 and the price of a cookie is $0.50. At her current bundle, the marginal utility of the next bar of candy she could purchase is 12 utils and the margi..
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
A nation is enjoying a good economy with high and rising real GDP, expectations for continued growth and profitability, increasing personal incomes and low unemployment (expansionary business cycle). Outline the effects on supply and demand for loan ..
Please discuss corruption, including effects, the basic causes, and possible measures to control it. What would you like to see done and why? What steps are essential in the rich countries? What is the asset recovery movement? What encouraging events..
q.price comparison services on the internet as well as shop bots are a popular way for retailers to advertise their
q.suppose a firms production function is given by q l12k12. the marginal product of labor and the marginal product of
Consider a closed economy which can be characterized by the following equations: C = 400 + 0.8YD I = 600 + 0.1y- 1000r G = 300 T = 125 (M/P)d = 0.2Y-6000r (M/P)= 400 a. Solve for the goods market equilibrium and state the equation for the AD and IScu..
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