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Since GDP = C + I + G + Net Exports, it stands to reason that when C and I are low in a recession and net export spending is essentially dependent on foreigners, the only stimulatory policy open to government is via G through changes in its budget.
Do you agree? Justify your answer. what about monetary and fiscal policy can we use them in that situation ?
A producer of hard disk drives for note book computers currently has a factory with two disk-processing machines, which it cannot change in the short run. Each of the machines costs $100 per day (the opportunity cost of the funds used to buy them)
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. The firm is earning $5.50 on every $50 invested by its founders. What is the percentage rate of return
Assume oil is an exhaustible resource supplied competitively by many small suppliers. The interest rate is 5% per year. Assume the price in the year 2011 is $40 per barrel, extraction costs are $10 per barrel, constant over time in nominal terms.
How much economic profit do you expect that Robert's company will make in the first year?
Harvey wanted to start his own business so he quit his job at Winona State University where he earned $98,000 a year. He figured his entrepreneurial talent to be worth $15,000 a year.
Suppose that there are two types of players, good and medium. the team demand curve for top-quality players is Q = 27 - 5 w , and the market supply of top players is Q = 4w, where w is the wage in millions of dollars.
Suppose that this year's money supply is $50 billion, nominal GDP is $1 trillion, and real GDP is $500 billion. What is the price level What is the velocity of money
b.) Calculate point price elasticity of demand when Q=1600. Is the demand elastic or inelastic at this quantity How do you know c.) What will be the maximum total revenue the firm can obtain
a. What is the real value of output (Q) Now assume that the Fed increases the money supply by 10 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase c. If, instead, real output is fixe..
Suppose that the production function is Y= 9K^0.5 N^0.5 With this production function, the marginal product of labor is MPN= 4.5K^0.5 N^-0.5. The capital stock is K= 25. The labor supply curve is NS= 100(1-t)w]^2, where w is the real wage rate, t ..
Benefits of collaboration include developing critical thinking skills, discussion and consideration of ideas, and social skills development" (Kieser & Golden, 2009, p. 42). Paraphrase and cite.
Consider the market for health insurance. Suppose there are three people. Healthy Hal, Average Al, and Portly Pete. All three of these people will buy health insurance if it costs less than or equal to his actuarily fair insurance rate. Hal's true..
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