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Q. Oak tables are normal goods. What would be ultimate impact on the equilibrium price also quantity in the market for oak tables if the price of maple tables (a substitute) rises, the price of oak wood declines, and more buyers enter the market for oak tables? Effects of Inflation and Deficits on Interest Rates
Q. The data in deficit.xls come from the 2004 Economic Report of the President and span the years 1948 through 2003. The variable i3 is the three-month T-bill rate, inf is the annual inflation rate based on the consumer price index (CPI), and def is the federal budget deficit as a percentage of GDP. Try to estimate an equation where the dependent variable is i3.
Illustrate what happens if the consumer faces a borrowing constraint that prevents her from borrowing.
Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.
Assume that the firms act independently as in the Cournot model i.e., each firm assumes that the other firm's output will not change.
In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.
Some economists argue that only unanticipated increases in the money supply can affect real GDP.
What is their goal, and illustrate what decision criteria do they use in trying to reach that goal.
Now illustrate what is the price elasticity of demand. Illustrate what is the cross-price elasticity of demand.
Insurance agents receive a commission on the policies they sell.
GDP is significantly lower in your country than in the United States, Illustrate what might this imply.
Some economists have suggested that the best way to control medical costs is to remove the profit incentive for health care providers, particularly hospitals.
The moral hazard is the degree of risk that the insurance company is taking in order to provide coverage on the individual.
Explain your reasoning also explain Illustrate what she needs to do methodologically to make a stronger case.
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