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1. List and explain two factors that will cause the AD to shift to the left
2. Why is the aggregate demand (AD) curve downward sloping? Discuss and use graphs where necessary?
Does the Economy always achieve long run equilibrium output at its natural rate? Explain
Should the objective of the firm be shareholder wealth-maximization. Illustrate what are the limitations of the wealth-maximization model of the firm. What are the alternative models of the firm.
Define and describe Insolvency Risk. Describe the two best protections against insolvency at a Financial Institution. Describe a situation where Insolvency Risk could be caused 1) by Liquidity Risk; 2) by Credit Risk
What is the total market demand for polyglue at the price established by Alchem in Part (a)? How much of total demand do the follower firms supply?
Think about the ABC approach to consumer attitudes. How do the various components apply to your daily life as a consumer? Give examples and discuss!
An investment, which is worth 22,000 dollars and has an expected return of 15.75 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow..
Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.
Calculate the following: quantity, total revenue and profit when the company maximizes its profit and charges the same price in both markets.
You have been given the daunting mission of opening the first GM dealerships in Iran (now that the sanctions have been removed ). Which cultural factors should you take into account as you prepare to do business there . In particular do any of Hofste..
Your firm is considering the purchase of a machine that costs $75,000. It will be used for six years, and will have zero salvage value at the end of the sixth year. The firm’s combined state and federal tax rate is 40% and its after-tax MARR is 12%. ..
Emma spends all her money on sneakers and coffee. Emma’s budget is $50 and the price of sneakers is $10. The optimal bundle for Emma varies with the price of coffee and is as follows: According to the information above what is the price of coffee in ..
A firm has the production function Q=L times K. For this production function, MPL=K and MPK=L. The firm initially faces input prices w= $1 and r= $1 and is required to produce Q bar= 100 units. Later the price of labor, w, goes up to $4. Find the opt..
Assume that the history of the game is common knowledge. That is, in period t, the past choices of effort for all doctors over periods 1, ..., t - 1 are observed
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