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A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $108,937 million in the first year, but will decline by $2,295 million every year for the next 20 years after which time the product will no longer made. What is the present value of total revenue at an interest rate of 10% per year?
What could the FED ( Federal reserve system) do in 2002-2003 in order to bring the economy back to full-employment ? What did the FED actually do ? Explain in detail
Assume the farmer buys insurance that pays 3$ if it doesn't rain but costs 2$. Illustrate what is their consumption when it rains.
Consider again the case of a country that suffers an Ebola epidemic that reduces the population by 20%. (a) Given your answer for problem 8 in problem set 1, draw the Aggregate Demand and Aggregate Supply analysis (in the usual output-inflation graph..
Suppose an economy has no imports and no income taxes. Its marginal propensity to consume (MPC) is $0.75, and its real GDP level is $250 billion. Businesses increase their investment by $10 billion. Calculate the multiplier and the change in GDP.
Most individuals are aware of the fact that the average annual repair cost for an automobile depends on the age of the automobile. A researcher is interested in finding out whether the variance of the annual repair costs also increases with the age o..
q1. the basic concern of microeconomics isto keep business firms from losing moneyto prove that capitalism is better
Suppose the entire civilian labor force is 20,000 people and the number of unemployed is 2,000 people.
The production function for Our Production is Q = 25L – 0.05L2 ; where Q is output and L man–hours. (i) What level of man–hours will maximize total output? (ii) Calculate the marginal product for the following levels of man–hours: 25, 50, 100, 150, 2..
at an annual general inflation rate of f . Also, i = 9%. What is the amount A in actual dollars equivalent to A’ = $1,000 in constant dollars? Please provide step by step detail.
David Jones deposited $4,247 in a savings account on Jan. 1st 15 yrs ago. He received 6.05%/yr interest for the first 12 years and 2.49% interest since then. How much will his account be worth at the end of this yr (i.e., at the end of the 15th year
Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..
If the domestic price of oranges is $3.00 per pound and the world price is $2.50 per pound and if the nation allows unrestricted trade, what will be the result to consumer and producer surplus?
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