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An article in the Economist states that the value of potential GDP "is almost impossible to pin down in real time since the economy's equilibrium long-run stock of capital and labour are so difficult to estimate with precision. . . ."
a. What does the article mean by "real time"?
b. What does the difficulty in estimating the "long-run stock of capital and labor" have to do with the difficulty of estimating the value of potential GDP in real time?
c. Does the difficulty of estimating potential GDP matter for policymakers? Briefly explain.
A firm produces 10 units per week at a price of $500 each. With AFC of $100 and AVC $350 per unit, the firm is earning economic profits of $500 per week.
Select one of the microenvironments of marketing described in the lecture, such as demographic, cultural, economic, political, social, and technological, and a product category.
What is the effect on the price of a recordable CD and the quantity of recordable CDs sold if a. The price of an MP3 download rises? b. The price of an iPod falls? c. The supply of CD players increases?
what is the logic behind the theory of purchasing-power parity? suppose that money supply growth continues to be higher
Consider a permanent tax increase in the economic fluctuations model beginning from potential output prior to the tax increase. In the long run, as a result of the tax increase,
Draw the pre-intervention optimized supply and demand equilibrium. Explain and show what effect it has on the polis.
When comparing performance during the first five months of 2010 with the performance during the first five months in 2009, which warehouse shows the most improvement?
Describe how high entry barriers into a market will influence long-run profitability of the firms
Explain how this tax or subsidy would achieve the socially efficient level of output. Among the various interested parties - the monopoly firm, the monopoly's consumers, and other taxpayers - who would support the policy and who would oppose it?
a. Does this regression equation provide evidence of a statistically significant relation between voter support for Proposition 103 in a county and changes in average auto premiums affected by Proposition 103 in that county? Perform an F-test at the ..
Now suppose that all firms are revenue maximizers, taking prices as given, subject to a zero-profit constraint. Why is it difficult to contemplate an equilibrium in a case where there is free entry?
What are the firm's maximum profits?
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