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Aztec depends heavily on advertising to sell its products. Management at Aztec is allowed to spend $2 million monthly on advertising, but no more than this amount. Each month Aztec spends exactly 2 million on advertising. What is Aztec's elasticity of demand for advertising? Can you write the equation for Aztec's demand for advertising?
D&Z Dry Foods Distributions specializes in the whole distribution of dry goods, such as rice and dry beans. The firm's manager is concerned about an article he read in the morning's Wall Street Journal
Full employment income is estimated to be $11,000. The current interest rate is estimated to be 4.178 recent. While last year total business investment spending was $900.
Explain why marginal product first rises, then declines, and ultimately becomes negative. What bearing does the law of diminishing returns have on short-run costs? Be specific.
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
Assume an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP?
A pure monopolist determines that at the current level of output the marginal cost of production is $2.00, average variable costs are $2.75, and average total costs are $2.95.
What is the equilibrium level of income? Compute disposable income, consumption and aggregate demand.
Answer whether the following statements are true or false, explaining your answer in each case.
Using the exchange rates and prices in the tables above:
Discuss at least 3 reasons why and how workers become unemployed (be specific about causes), and also cite 3 reasons unemployed workers finally land new jobs or get rehired.
What is the main policy message of the AS-AD model, and how does it relate to the 1930s Keynesian revolution in economic theory? What should today's policy-makers assume about the natural rate of unemployment?
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