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According to the description of fixed investment, how would you expect a firm's investment decisions to be affected by asudden increase in demand for its products? What factors would determine the speed of itsreaction?
If the Rhine Corporation ignores the possibility that other firms may enter its market, it should set a price of $10,000 for its product, which is a power tool.
Assume the government increases education spending by $20 billion. How much additional consumption will this increase cause?
What are the four phases of a business cycle? How does money supply affect business cycles? What is the relationship between money supply growth and inflation? What is monetary policy? What is fiscal policy? What is the foreign exchange market?
Describe free trade harm the environment. Environmentalists argue that trade liberalization harms the environment.
Suppose Ke, the required rate of return, goes up to 12 percent; what will be the new value of Po?
In the United States, the capital share of GDP is about 3 percent, the average growth in output is about 3 percent per year, the depreciation rate is about 4 percent per year, and the capital-output ratio is about 2.5. Suppose that the production ..
Elucidate the differences between private goods, public goods, natural monopolies, and open-access goods. Provide examples of each with your explanations.
In the 1st half of the 20th century, AT&T had a near monopoly on local and long distance phone service. The company charged a price for local telephone services.
Compute the changes in inflation rates, unemployment rates and the RGDP growth rates.
There is a supply and a demand for most goods. The result is a market clearing equilibrium price. Firms many times supply a certain amount of the hot or must have product to the market.
The Optimal Scam Corporation would like to see its sales grow at 20% for the foreseeable future. Its financial statements for the current year are presented below.
Competitive market prices are determined through interplay of aggregate supply and demand, individual firms have no control over price. Market demand reflects an aggregation of the quantities that customers will buy at every price.
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