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Explain a "real-world" application of the PPF for your scarce resources associated with a scenario where you could spend your time (labor input), equipment (physical capital), and natural resources to allocate resources between two production options.
What are the consequences of an increase in the money supply on output and the price level? Does your answer depend on where the economy starts?
Watch the movie "A Beautiful Mind". Pay attention to the scene where Nash argues for an optimal equilibrium (the bar scene). Would you say that his "equilibrium" constitutes Nash equilibrium Explain.
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
What are the potential consequences of a country having a large overall debt? If you were in the position to implement a solution for the country's long-term debt, what would it be and why?
How would an increase in a sales tax affect GDP? Is domestic investment the same as investment done in any other country?
Explain how the Laws of Supply and Demand are illustrated in this graph. Describe the equilibrium price and quantity in this market.
Your analyst tells you that he has estimated the following linear regression model of your company's long run technology:
Many people believe that Congress will eventually have to reduce Social Security benefits in order to reduce the budget deficit. Although most of the changes would not take place until later, assume for the purpose of this problem that Social Securit..
Suppose consumer income declines in the market for bologna, an inferior good. At the same time, the number of bologna producers decreases. Therefore, the equilibrium price of bologna will _____ and the equilibrium quantity will _____.
Calculate the year in which income per capita in the US was equal to year 2010 income per capita in El Salvador.
Differentiate between the terms deficit and surplus as used in economics.
if the fed wants to keep real gdp at its potential level in 2015 should it use expansionary policy or contractionary
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