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Suppose that the aggregate demand curve in a particular year is given by the algebraic
expression: Y = 3000 + 1000/P, where Y is the aggregate output and P is the price level as given by the GDP Deflator. Potential GDP (Y*) = 4000.
a. Plot aggregate demand and long run aggregate supply curves. Show aggregate demand schedule.
b. Suppose that the prices are flexible. Determine the price level and show it on the graph.
c. Now suppose that the following year, the aggregate demand curve is given by:
Y = 3000 + 1100/P. In what direction has the aggragate demand curve shifted? If the aggregate output remains at the potential level, determine the new price level. Calculate the rate of inflation between the two years.
In a year, weather can impose storm damage to a home. From year to year the damage is random. Let Y be the dollar value of damage in a given year. Assume that 95% of the year's Y=$
Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy
HI, I am currently working on my econometrics assignment which requires me to replicate the result of a published paper. I have been given the same data set as the paper therefore
volatility
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Derive marginal benefit of reducing principal balances
My econometrics assignment is due for monday, August 18th. I''m running out of time and need a help to meet the deadline. I need answers for 4 problems from the basic econometrics.
In a study relating college grade point average to time spent in various activities, students are asked how many hours they spend each week in four activities: studying, sleeping,
Given the demand function Qd = 650-5P-P2 where P=10 Find out the price elasticity of demand.
How can a person achieve his goal for development?Explain it with 5 examples.
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