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When output is at its potential:
A. unemployment and capacity utilization rates are likely below the target levels.
B. unemployment and capacity utilization rates are likely equal to the target levels.
C. unemployment and capacity utilization rates are likely above the target rates.
D. the unemployment rate is equal to its target rate, but the capacity utilization rate is above its target rate.
Since the uninsured and lower income population generally tend to be less healthy than those who are better off financially, an insurance plan for the less-healthy would not be a good business venture. What is the best way to provide health insurance..
a farmer has a production function fl where the input is capital l. the cost of this loan is l1i. the farmer also has
Is the model heteroscedastic? Check the KB results to determine your answer.
Suppose you deposit $10,000 in a savings account that earns 8% nominal annual rate for 5 years. The interest will be compounded semi-annually. What are the periodic and the effective annual rates? What is the amount of money in the account at the end..
Why are many online service markets likely to be perfectly competitive? Recently, competitors of Plug and Play have been opening their own shared- workspace centers. Does the market for shared workspace likely possess characteristics of a perfectly c..
The City of Ames issued a new series of bonds on Jan 1, 2009. The bonds were sold at par ($1,000), have a 2.5% annual coupon rate and mature in 10 years, on Jan 1, 2019. Coupon interest payments are made semi-annually (on June 30 and December 31). Wh..
Assume that American lumber companies make 52 billion board-feet of lumber each year, of which 10 billion are exported and 42 billion are sold in the United States. The average price is 30 cents per board-foot. How much producer surplus would U.S. lu..
Beth has plans to go to a play and already has a $50 non refundable, non exchange able, and non transfer able ticket. Now Carl, whom Beth has wanted to date for a long time, asks her to a party.
In the late 1990s, the U.S. economy experienced a period of extremely low inflation and extremely low unemployment. Use the AD/AS model to explain what sort of change in the economy would cause this. Include a graphical analysis in your answer, and p..
According to the theory of purchasing power parity (PPP), what will happen to the value of the dollar (against foreign currencies) if the U.S. price level doubles and price levels in other countries remain constant? Why is the theory more suitable to..
Own price elasticity of demand for clothes is -2 and cross price elasticity of demand between clothes and shoes is -0.5. if the store increases the price of clothes by 5%, what will be the change in revenue?
The practice of Canadian firms dumping their products in Sweden poses a problem for economic policymakers since dumping tends to: If import licenses are auctioned off to domestic importers in a competitive market, their scarcity value (revenue effec..
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