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Suppose that in a particular country, GDP per capita was $ 10,000 in 1960 and $ 40,000 in 2008. Using the rule of 72 (not a calculator), approximate the annual growth rate of GDP per capita.
You promise to cut tax rates, increase transfers and government purchases, reduce the governments budget deficit and reduce the governments debt as a fraction of the gdp. If elected, is it possible for you to keep all of your campaign promises.
Mr. Smith wishes to sell a bond that has a face value of $1000. The bond bears an interest rate (coupon rate) of 7.5%, with bond interest payable semiannually. Four years ago the bond was purchased at $900. At least a 9% annual return (APR) on the in..
If the price of one good is four time the price of the other also the price of both double, Illustrate what effect does it have on the set of affordable bundles
Unemployment is one of the major concerns that people have in today’s economy, since losing one’s job can be one of the most devastating events a person can experience. What is the labor force participation rate? What was the labor force participatio..
Illustrate what are the real income also interest rate elasticities of real cash balances
Elucidate the production combinations society would like to choose. the boundary that divides all production combinations into attainable ones.
Suppose that two goods are perfect complements. If the price of one good changes, what part of the change in demand is due to the (Slutsky) substitution effect and what part is due to the (Slutsky) income effect? Explain.
q1. a good example of an oligopoly market structure is the airline industry. there are not many airlines in the
Suppose that U.S. citizens start saving more. What does this imply about the supply of loanable funds and the equilibrium real interest rate. Explain what would happens to the real exchange rate.
Suppose current interest rate is 5% and you pay $250 for a bond. How much should bond pay you in one year.
What is being held constant when a demand curve for a specific product (shoes or apples, for example) is constructed? Explain why the demand curve for a product slopes downward to the right.
A consumer has a utility function, donuts (A) and peaches (B) given by u(A,B) = squareroot AB. Now suppose the price for donuts is .75 cents a unit. what is the maximizing combination of donuts and peaches.
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