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How much does GDP rise in each of the following scenarios:
1. During a recession, the government raises unemploymemnt benefits by $100 million.
2. A new US airline purchases and imports $50 million worth of airplanes from the European company airbus.
3. A new European airline purchases $50 millin worth of airplanes from the American company Boeing.
4. A store buys $100,000 of chocolate from Belgium and sells it to it's consumers in the United States for $125,00.
Functions of a Commercial Bank 1. Credit Creation Creation of credit is a major function of a commercial bank. When a bank creates credit or advances loans, there tends
You are the manager of a firm that receives revenues of $50,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -3,
what is GDP
Individual A has UA(XA,YA)=lnXA+2YA and has $500. PX=5 and PY =10. (a) Find the optimum. Show that it is indeed the maximum. (b) PX=10. Find the new optimum. (c) Calculate
You have a choice between a lottery lump sum payout of $10,000,000 today or a series of 25 annual annunity payments the first payment will be one year from today ad a discount rate
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Do neoclassical economists view prices and wages as stickly or flexible
. (40 points) Consider two consumers, A and B. A and B both want perfect consumption smoothing (c = cf) and both have no current wealth. However, the two consumers have different i
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An investment promised a payoff of $195 two and a half years from today. At a discount rate of 75% per year what is the present value of this investment? A. 169.47 B. Not enoug
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