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Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 6%, the growth rate of the velocity of money is 2% and that the real economic growth rate is 4%.
Now assume that oil prices increase. After the increase in oil prices, the inflation rate in the economy is 9%. Now assume that the federal government decides to increase government spending in order to combat the rise in oil prices. After the increase in government spending the total spending growth is now 14%.
1. After the increase in oil prices, what is the real economic growth rate?
As manager of City Racquet Club, you must determine the best price to charge for locker rentals.
A large city in the mid-West needs to acquire a street-cleaning machine to keep its roads looking nice year round. A used cleaning vehicle will cost $85,000 and have a $20,000 market (salvage) value at the end of its five-year life. Find the breakev..
An assembly-line worker is more likely to exert less effort and produce fewer units when he is paid by the hour than when he is paid based on the number of units produced.
A monopolist with a straight line demand curve finds that it can sell two units at $10 each or ten units at$2 each. Its marginal cost is constant at $8 per unit. A monopolist would produce how how many units and charge how much? A perfect competitor ..
Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.
Would company benefit by advertising in this perfectly competitive market. What would happen to price of toothpaste, would it rise or fall. What would happen to profits company makers.
Why has supply chain management become so important in recent years? What has changed in terms of business and marketing resulting in growing emphasis on the development of relationships and partnerships both upstream and downstream?
Apply the decision-making model developed. What are the basic steps in all types of decision making processes.
The largest labor union in the United States represents approximately
q.a city is planning a new convention center and has received bids from two contractors. the center one contractor
List a few major challenges YOU THINK would impact the future economic well being of the United States. Explain why these are crucial challenges and how they can be overcome. Your response MUST make references to short term fluctuations as well as lo..
Explain four problems with the argument that trade protection is needed to protect American jobs. Describe the economic reasons why businesses use off shoring.
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