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1. What is the GDP for this economy?
2. What is the GNP for this economy?
3. What is the NNP for this economy?
4. What is the national income for this economy?
5. What is the gross investment in this economy?
US and Canada can both grow wheat and can do mining. Use the following table to look for which country has a comparative advantage in mining. (Hint: Find the Absolute Absolute Cost in US Cost in Canada Wheat $5 C$8 Mining $10 C$12 c..
A woman managing a photocopy establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is $120,000, and her expenses are as follows: Salaries- $45,000, Supplies $15,000, Rent- $10,..
using the following equation for the demand for a good or service calculate the price elasticity of demandcross price
You spendthrift cousin want to buy a fancy watch for $425. Instead, you suggest that she buy an inexpensive watch for $25and save the difference of $400 for 40years in account earning 9% interest per year.how much will she accumulate in this accoun..
The second is that the economy has been in a cyclical boom and unemployment has fallen well below the natural rate. How might you distinguish between these two hypotheses? Do they have different implications for inflation?
The city would borrow money to finance the project, and the daily payment required to pay off the loan over 20 years would be $8,100. How does the benefit to consumers compare to the cost of the project?
Explain how the exchange rate acts as an automatic stabilizer in an economy with flexible exchange rates.
Show that a policy of ι = 0 does not necessarily maximize social welfare at time t = 0.
Assume velocity is constant, real income is constant at Y ¯= 200 and that the demand for real money balances is given by: L(i, Y ) =Y/√i (9) (a) If expected inflation is zero, the nominal interest rateis i = 0.25 and the price level..
Suppose our business plans to take out a 5-year loan for $100,000. The after-tax MARR is 10%, the tax rate is 40%, and the loan interest rate is 15%. Rank the following loan options using present worth analysis: Method 1: Balloon loan (pay only in..
What is the opportunity cost of future growth?
How do we apply the loanable funds market model?
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