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Suppose output is initially equal to potential GDP. Now assume the government cuts taxes (and assume government expenditures remain unchanged). How does this affect the ADI curve? What happens in the short run to equilibrium output? To unemployment? Over time, will inflation tend to rise or to fall? Explain how the adjustment of inflation works to return the output gap to zero. What happens to the real interest rate?
Jim and Matt allocate their consumption between two goods: hats and bats. The price of hats is $4 each and the price of bats is $8 each. For Jim, the marginal utility of the last hat consumed was 8 and the marginal utility of the last bat was 24.
Time-series data for the last 15 years are used to estimate the regression model. E = a + bN where E is total earnings of the motion picture industry measured in dollars per year and N is the number of tickets sold in December.
1 the theoretical background and hypothesis and 2 the methodology section.background and hypothesisbuilding upon the
What is the opportunity cost of bicycles in terms of snowboards at Home? What is the opportunity cost of bicycles in terms of snowboards in Foreign?
A machine operation produces bearings whose diameters are normally distributed, with a mean of .498and a standard deviation of .002. If specifications require that the bearing diameter be .500 inch +- .004 inch, what fraction of the production wil..
(c) What is the variable cost of producing 40 units of output (d) How many units of the variable input should be used to maximize profits (e) What are your maximum profits (f) Over what range of variable input usage do increasing marginal returns exi..
Suppose the market demand curve for a product is given by: Qd = 500 - 15P + 20I and the market supply schedule is: Qd = -25 + 10P + 10K. The initial values are I = 10, K = 5. a) What are the equilibrium price and quantity in this market
A table saw costs $175 at a local store. You may either pay cash for it or pay $35 now and $12.64 a month for 12 months beginning 30 days hence. If you choose the time payment plan, what nominal annual interest rate will you be charged
List the six evidence gathering techniques in order of cost from highest to lowest.
Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix..
What two characteristics define a public good? Give an example. Why will private markets not supply the efficient level of public goods?
Show that there exists a unique solution to this problem, but there exists no Lagrange multiplier. Show that this is because the Slater condition is not satisfied.
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