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In year 1, the economy is full employment and real GDP is 400 million the GDP deflator is 200, the velocity of circulation is 20. In year 2, the quantity of money increase 20 percentage. If the quantity theory of money hols calculate the quantity of money, the GDP deflator, real GDP, and the velocity of circulation in year 2
Analyse and evaluate the role of different entry strategies when operating in culturally distant markets. Make reference to factors external and internal affecting the choice of foreign market entry modes.
Assume for simplicity that a monopolist has no cost of production and faces a demand curve given by !Q = 150−P. Calculate the profit maximizing price-quantity combination for this monopolist. Calculate the monopolist’s profits.
How does a decrease in the global price of an input (such as oil) effect the SRAS curve? Explain and illustrate why also include what effect would we expect this shift in SRAS to have on equilibrium GDP and economic growth?
Mac has bequeathed his spaceship Serenity to his second in command, Zoe, upon his death. Zoe knows that Mac's weekly hairbreadth escapes from mortal danger cannot continue forever, and she estimates he has six years to live. Given that Serenity is no..
From your analysis, craft a professional letter at least one page long to your state legislative representative recommending a beneficial change to the law. Or, if you believe no changes should be made, include detail on what portions of the law y..
What does the production possibilities curve represent? discuss the implications. what are the factors of productions? What is the difference between the current account and the capital account, what is included in each calculation? are these account..
A monopoly with a constant marginal cost m has a profit maximizing price of p1. It faces a constant elasticity demand curve with elasticity e. After the government applies a specific tax of $1, its price is p2. What is the price change p2-p1 in terms..
Two students, Ryan Wattenberg and Emma Bennett, are discussing the idea of convergence over coffee. Ryan considers convergence to be true in theory but impractical in the real world. He claims that most low-income developing countries are stuck in a ..
For se shipment patterns, what would be better brewery location for minimizing annual transportation costs to warehouses.
In theory, “Giffen good” is a good for which the demand curve is upward-sloping, which violates the law of demand. Please provide at least one example as a Giffen good and explain briefly why the demand curve is upward-sloping.
Explain Thorstein Veblen's theory of consumption. Is economic behavior, and consumption in particular, driven by utilitarian impulses or socio-cultural factors? What is the point of conspicuous consumption and conspicuous leisure?
If the prices of all products are raising at 5 percent per year and your employer gives you a 5 percent salary increase, are you better off, worse off, or equally well off in comparison with your situation a year ago? Use indifference curve analysis ..
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