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1. Why might increases in aggregate demand simply lead to a higher price level rather than a higher real GDP?
2. Discuss the role of price and wage adjustments in understanding the macroeconomic equilibrium.
An outer beltway is being planned for a metropolitan area in your state. The initial cost is estimated to be $150M. Benefits are expected to be $8M a year. Annual maintenance costs are expected to be about $800K.
The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-back..
Create a time series from the simulated panel. How well can a quadratic adjustment cost model approximate the aggregate investment time series created by the model with nonconvex adjustment costs? Add in variations in the price of new capital into..
Should the court invalidate the contract on the grounds that the buyer had a duty to disclose the information? Is the information socially valuable or purely distributive?
Assume a natural monopoly with total costs C=500 20Q. Market demand is Q=100-P. a) Suppose that average cost pricing is employed. Find price, output, and the deadweight loss. b) Now consider two-part pricing.
What are the five characteristics of a good tax system?
Now, suppose the output quantity of interest is Vout. Assuming RF is very large, compute the closed-loop gain and I/O impedances of the circuit.
Suppose the demand for a firm's product is estimated to be P = 200 - 2Q from which it can be shown that TR = PQ = 200Q - 2Q2 . The cost of producing and selling the product is known to be TC = 625 + 50Q + 3Q2 .
From the Keynesians, Y = C I G NX can be transformed into a theoretical model. In particular, assume that the consumption C = A mpc (Y-T), where A is a constant, mpc is the marginal propensity to consume, Y is national income and T is income taxes..
Which one of Marshall's rules suggests why labor demand should be relatively inelastic for public school teachers and nurses? Explain.
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q+2Q^2. a. How much output should the firm produce in the short run
would an hmo entering the medicare market expect to experience favorable or adverse selection?would the magnitude of
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