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Pros & Cons of combating recession by highway building
Supposing that you get a summer intern job and a recession began while you are there. Write a memo to your boss, who is a member of Congress, on the pros and cons of a big highway-building program to combat the recession.
A rise in average variable price always increases the degree of operating leverage for firms making a positive net profit.
Explain how would the subsiquent changes in price affect total revenue. What are the major determinants of price elasticity of demand.
Assume that the payouts of the game were changed (if necessary) such that it results in gamblers having a positive expected value.
Elucidate how will looming fears of a recession expected to decrease consumers incomes by 4 percent over the next year impact the quantity of coffee Starbucks expects to sell.
The Lexus LS 430, the top of the line Lexus sedan, riad a base price in Canada of C$85,700 during the fall of 2005. Restated in US dollars using the exchange rate prevailing then, that price is $71,885.
Consider economy that is above full-employment equilibrium (natural rate of output) because of an increase in AD. Prices of productive resources have'nt changed. With the help of graph
Explain what happens to the position of the nation's short-run Phillips Curve if the following events occur:
Prior to opening his hardware shop Bob worked as an investment banker earning $175,000 each year. He pays his employees $150,000 per year.
Suppose demand for the firms watches falls permanently to P = 20 - Q/20,000. In view of this fall in demand, what output should the firm produce in the short run? In the long run? Explain.
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
Assume Helen's income increased from $30,000 per year to $45,000 per year and Helen\'s crab meat consumption went from 25 pounds per year to 30 pounds per year.
Assume that a price support system for cotton requires the federal government to pay farmers $3,000 for each acre to not plant cotton. How would you shift either the supply or demand curve for cotton to describe the effect of this action? In your a..
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