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Consider an open economy with flexible exchange rates. Suppose output is at the natural level, but there is a trade deficit. What is the appropriate fiscal and monetary policy mix?
There is a belief that a person's performance on the GMAT (entrance exam to get into graduate school) can be predicted by their undergraduate GPA. Based on regression analysis what are the following values, (Round to three decimal places; put it ..
Modify the model presented in Section 14.4 such that followers can now use the innovation of the technological leader and immediately leapfrog the leader, but in this case they have to pay a license fee of ζ to the leader.
calculate the exact elasticity of demand in the following examples: Then tell if, in each case, demand is elastic, inelastic, or unitary elastic. (a) When the price of a deluxe car wash rises from $10.00 to $11.00, the number of daily customers fa..
How much cloth and food will the economy produce after this increase in its capital supply? Describe how the allocation of machine-hours and work-hours between the cloth and food sectors changes. Do those changes conform with the changes described ..
Suppose this pattern held in 1985, but that it is no longer true today. What do you think might account for that change?
i) If there is no trade in this market between the US and the rest of the world, what is the equilibrium price in the US market (ii) If there is no trade in this market between the US and the rest of the world, what is the equilibrium price in the ..
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. What is profit.
Hook, Inc., is an international manufacturer of bulk antibiotics for the animal feed market. Dr. Mike Jones, head of marketing and research, seeks your advice on an appropriate pricing strategy for Pharmed Caplets, an antibiotic for sale to the ve..
How can you explain the seemingly contradictory result that the workers supply a different number of labor hours? Albert has no substitution effect, and Sid has no income effect when the wage declines to $19.
Assume that the country possesses 50,000 units of capital and 25,000 units of labor. What is Y What is labor productivity computed from the per-worker production function Is this value the same as labor productivity computed from the original prod..
you are a division manager at toyota. If your marketing department estimates that the semiannual demand for the highlander is Q=100000-1.25P, what price should you charge in order to maximize revenues from sales of the highlander
A recent college graduate got a job and began a saving account. He authorized the bank to automatically transfer $75 each month from his checking account to the savings account. The bank made the first withdrawal on July 1,2007
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