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Suppose that the forecast is that the U.S. and local economies will grow by an unusually fast rate of 4% in 2013. What should a small business selling paint do in the next three months to prepare for that growth in the eonomy?
Explain the multiplier intuitively. Why is it that an increase in planned investment of $100 raises equilibrium output by more than $100 Why is the effect on equilibrium output finite How do we know that the multiplier is 1/MPS
Given that monetary policymakers, firms, and workers all recognize that the decline in the real exchange rate is only temporary and given the three policy responses described in part d of 580 Chapter 17 New Classical Macro Confronts New Keynesian ..
Suppose an economy's real GDP increased from $300 in 2009 to $400 in 2010. 1.What is the growth rate of its real GDP 2.If the growth rate of real GDP were to continue at the same rate you have calculated, how many years would it take for real GDP t..
A firm sandab has a production function x =f(h,k) =ln(h)+3ln(k), where x=pots of crabs caught, h=labor hours employed, and k= number of boats rented (all per week); k>1. San dab operates in perfectly competitive markets.
If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation What term do economists use to describe this s..
For what values of a is he risk averse, risk neutral, and risk loving? From now on, assume that a = 1/2. Johnny owns a house that would cost $100,000 to replace should it ever be destroyed by fire.
Suppose we have two products in the market, orange and potato, the demand function and supply function for orange: Qd1 = 10 - 2P1 + P2 Qs1 = -2 + 3P1 the demand function and supply function for potato: Qd2 = 15 + P1 - P2 Qs2 = -1 + 2P2
Assume the Following IS-LM Model E Expenditure sector Sp = C + I + G + NX C = 110 + (2/3)YD Calculate the equilibrium values of private domestic investment (I), tax revenues (TA), and real money demand (md). How much of private domestic investment (I..
What output, price, and profit levels would prevail following expiration of the company's monopoly franchise assuming that vigorous competition evolves between the local cable TV company, voIP firms, and Big Phone, Inc. Assume that a long-run perf..
During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expenses, utilities and rent. The owners of the firm have provided $500,000 of their own money to the firm (and view that money as a loan to..
Jeff holds $50,000 wealth which has a utility of 7.07 utils (assuming utility is the square root of wealth in thousand dollars). He considers investing this in a gamble which has a 0.6 probability of increasing his total wealth to $100,000 and 0.4..
What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day Assuming that the farmer can dispose of the $7 from the writer as she wishes, what range of payments will the beekeeper accept
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