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Answer 2 questions
1. Explain why real GDP might be an unreliable indicator of the standard of living
- Answer not more than 250 words and add 2 academic references (Harvard referncing style)
2. Why does unemployment arise and what makes some unemployment unavoidable?
- Answer not more than 250 words and add 2 academic references (Harvard ref style)
Suppose that the government wants to stimulate GDP using fiscal policy, for example by raising G from 2,500 to 3,000. How does this affect your IS and LM curves? Suppose that instead of using fiscal policy, G remains constant at 2,500, but the money ..
Elucidate what the Justice Department argued that the merger would lessen competition and raise prices of business software. Is there an economic argument that the merger might actually result in lower prices.
Explain what the quote, “Too many cooks spoil the pot” has to do with the law of diminishing marginal returns. In the context of a restaurant operation, what are the variable and fixed costs?
What are the costs and benefits of outsourcing? Can outsourcing be used to avoid tariffs and other trade restrictions? Provide 2 real-world examples of outsourcing by a firm(s) which competes globally. Need citations
Suppose the value of the price elasticity of supply is 4. What does this? mean? Deadweight loss is.
Describe and analyze the macroeconomic environment. Explaining the economic performance from the data. Explaining what you see in your series. What is the economic growth during 2003-2013 ? What is the role of the series that you collected (in point ..
You bought a call option with a strike price of $35. What is your total payoff on this option contract if the underlying stock is selling for $36.70 on the option expiration date? You purchased a call option with a $22.50 strike price and a call prem..
A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $28. The cost of other variable inputs is $500,000 per day. Calculate the firm’s profit or loss...
q1. which of the following is not a possible explanation as to why wage inequality increased markedly over the last 40
Identify and describe (5) key characteristics of a monopolistic competition market. Define a cartel. Give 3 examples of a cartel in the business world.
The average total cost of a monopolistic firm is AT C = 80/Q + 20Q. The firm is facing the demand function given by P = 6000 − 20Q. a) What will be the total profit that this firm will generate if it chooses price and quantity optimally?(Profit=22492..
Explain what the reserve ratio is and provide an example demonstrating its effect on lending in the banking sector. (3 marks) b) With reference to question 6a) explain the concept of the money multiplier.
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