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Per capita real GDP is given by the equation y = Y/PN, where Y is nominal GDP, P is the GDP deflator, and N is population. In the United States, if the average growth rate of nominal GDP is 2.8 percent, inflation is 1.6 percent, and population growth is 0.5 percent, what is the growth of real GDP? Per capita nominal GDP? Per capita real GDP?
Will there be economic profits in the long run in a monopolistic competitive market? Explain your answer. " Firms in monopolistic competition are not producing at minimum average cost. They are said to have excess capacity." Explain the statement...
What are the values in 2000 dollars of Nancy's monthly mortgage payments in 2001, 2002, 2003, and 2004 and list and describe four determinants of productivity.
Assume worker productivity increased at the rate what rate of increase in RGDP would be sustainable without increasing inflation pressures.
So explain how popsicles will be sold every day in the short run if the price rises to $2 each? In the long run, if the price rises to $2 each.
3. If the civil war decreases labour productivity in Syria, explain what will happen to the followinga. Potential GDPb. Employmentc. The real wage rate.
Explain how the agency problems have played a role in different parts of the economy: moral hazard (unobserved effort), and adverse selection (unobserved type).
Suppose that you will receive $2000 a year in years 1 thru 5, $3000 a year in years 6 thru 8, and $4000 in year 9 with all cash flows to be received at the end of a year.
a. What is the Nash equilibrium of the game? Interpret the result. b. What are the ways the team (or a principal acting on their behalf) can get a better outcome?
Many people regularly commute from the suburbs to downtown Pleasantville. Due to traffic congestion, the trip takes 30 minutes when you travel by highway but only 15 minutes when you go by side streets.
Explain if you are traveling to Europe in six months and you believe the Euro is going to appreciate against the American dollar, list two ways you could hedge this situation and protect yourself against the appreciation.
Discuss expectations of changes in economic, financial, and international conditions in the near future. Identify any economic issues of special concern. Recommend whether the FOMC should rise, lower, or keep short-term interest rates the same. The e..
Illustrate what type of fiscal policy did the Congress enacted while the effects of Hurricane Katrina.
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