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1. Let u(x,y) = x1/3y2/3 and let I = 100, Px = Py = 1. Write the FOC for the consumer's UMP and compute the consumer's demand function.
2. Let U(x,y)=5x+4y and let I denote income and Px,Py the prices of the goods. Compute the demand functions for goodx and y when I=100 and Px=1=Py.
a. Anticipated changes in aggregate demand effect only the price level; they have no effect on real output. b. downward wage inflexability means that declines in aggregate demand can cause long lasting recession. c. Changes in money supply M increas..
Examine your Y data (excluding the hold out period) to determine if it needs to be differenced to make it stationary. Show a time series plot of the raw Y data and autocorrelation functions (ACFs).
Cubby Company entered into a lease contract for ten photocopy machines for its corporate headquarters. The lease contract qualifies as an operating lease in all terms except there is a bargain buy option.
If Jones trades a used car to Smith for $5,000, nothing new is created. Thus, there is no way the transaction can improve the welfare of people.” Is this statement true
If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true that marginal revenue exceeds marginal cost.
A product is expected to earn 25,000 at the end of the first year, and to decrease 500 subsequent year. This product is going to be in service five years. The market value at the end of five years is 5,000. At an interest rate of return of 5%,..
a compare the initial sum of profits of the two individual firms p1 p2 with the profits of the merged firm pa. explain
for every penny that the price of gasoline goes up the U.S. postal service experiance a monthly fuel cost increase of $8 million. State what assumptions you need to make to answer this question
A museum increases its admission price by 10 percent. As a result, total revenues increase by 10 percent. the price elasticity of demand for admission is?
How would you expect each of the following factors to affect the natural rate of unemployment?There is an increase in the rate of technological change
the basic question in this case is whether airbus and boeing should work together to develop a new vlct airframe or
Differentiate the expenditure versus income approach to GDP and discuss why are the results the same? What are some of the drawbacks of using GDP while doing international comparisons among countries?
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