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Assume an economy in which the value of the GDP deflator is 2 and the current inflationrate is 4 percent. Calculate the real and nominal interest rates.
Alexander studies away from home. While at school, he spends all his income on air travel and economics textbooks. In a diagram with air-travel as the x-axis good, as pair increases while ptext remains unchanged, Alexander's price consumption path..
Explain in detail keynes view on income determination. that is to account for income determination using the keynessian model oif income determination approach
The Boca Raton Company announces that if it reduces its price subsequent to a purchase, the early customer will get a rebate so that he or she will pay no more than those buying after the price reduction. a.If the Boca Raton Company has only one ri..
Discuss and explain the components of GDP in the output approach and in income approach, NDP, NI, PI, and DI.
Ruby has purchased a new home that needs repair. She has gained approval for a home improvement line-of-credit for $100,000 that she will use, along with her personal earnings, to fix up the house over three years. Interest on line-of-credit loans..
Example of a leading macro-economic indicator - describes the implications of ecology for marketers in terms of the marketing environment?
Leonitres bought unit trusts and invested for income. She invested £42,000 in a unit trust with an offer price of £75 per unit, and sold the units after 3 years at the same price. During this period she received income from the units of £9,744. Th..
Choose a product you have purchased in the past month from a clothing or shoe store. Describe how each of the 4 factors contributed to the elasticity of the good. Is the product considered elastic, inelastic, or unitary elastic
Discuss the sticky-wage model of aggregate supply, carefully identifying any assumptions made. How well does the sticky-wage model explain the observed behaviour of real wages over the business cycle?
In the market for fertilizer, the equilibrium price is $4 per pound, and the equilibrium quantity is 500. At that point, the price elasticity of demand is 2.3, and the price elasticity of supply is 3.4. If a $1 excise tax is imposed in this market..
Discuss why the government would implement a program to lower the price of a good and the welfare effects of such a program. Give an example of good for which such a policy has been implemented and explain the purpose of the policy.
Economists often argue that a temporary increase in government purchases -say for military purposes-will crowd out private investment. Use the saving-investment diagram to illustrate this point, explaining why the curve(s) shift. Does it matter wh..
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