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Suppose inflation rate in Philippines is 100% over one year, but the inflation rate in Japan is only 3%. According to relative PPP, what should happen during the year to the Japanese yen exchange rate against the Philippine peso?
Describe the point price elasticity of demand. What is the new point price elasticity if price is raised.
Determine what would happen to GDP if a significant number of house spouses who were previously stay home to care for their children began taking jobs and placing their children in day care?
Suppose the reserve requirement (R) is 15%. What is the effect on total checkable deposits in the economy if bank reserves increase by $60 billion. Assume E=0
Elucidate how the price level will be affected by these expenditures in the short-run. Explain how GDP is affected in the long-run.
Illustrate what is the optimal cost that the dealer should sell the tire to the customer.
The following show data on investment rates and output per worker for two pairs of countries. For each country pair, calculate the ratio of GDP per worker in steady state that is predicted by the Solow model, assuming that all countries have the s..
Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the book keeping tasks are done ..
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
In your diagram, show that a family that considers food a necessity, given $M/3 in cash would spend less than $M/3 on food. What is the optimal bundle of this type of family if instead of receiving cash it received the SNAP card? g) At bundle H, i..
Movie tickets prices increased by 5% and resulted in a 8% drop in sales. What is the price elasticity of demand? 2. If ticket prices decreased by 5% instead of raising them, what would the changes in attendance would you expect? 3. If a competing cin..
Tennessee just instituted a state lottery. The initial jackpot is $100,000. If the first week yields no winners, the next week's jackpot goes up, depending on the numbers of previous players who placed the lottery bets. The probability of winning ..
In the context of a supply demand diagram of low skill labour market, a minimum wage above competitive equilibrium will decrease employment relative to competitive equilibrium.
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