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The business cycle is measured in terms of changes in real Gross Domestic Product and is associated with changes in the unemployment rate. The financial performance of most industries is affected by the business cycle, although not equally. Consider an industry or a firm and suggest how vulnerable they are to the business cycle and some reasons why. You can use data from the last recession (2007-09) and subsequent economic recovery if applicable.
Illustrate what ranges of the money growth rate (assuming positive values) would allow the Bank of Korea to achieve this objective.
Suppose that a company has a fixed proportions production function that requires it to use two machines and one worker to produce 1000 units per hour. Explain why the cost per hour of producing 1000 units is 2v+w (where v is the hourly rent for the m..
Assume that Country A has a population of 500,000 and only produces 1 good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfil all the demand. What is the composition ..
Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other. The market system works by getting each person, motivated by his or her own self-interest, to produce products for other people. Markets e..
What is the total market demand for poly-glue at the price established by Alchemy. How much of the total demand will the follower firms supply.
Delta Airlines experienced huge losses for several years in the early 2000’s, yet it continued to operate its fleets. Why didn’t Delta shut down its operations to further avoid losses?
How many popsicles will be sold/supplied each day in the short run if the price rises to $4 each per day
If the objective is to increase total revenue, should the price be increased or decreased, Explain.
Assume that output is 1.6% below potential and that the inflation rate is 3.5%. Assume that the Fed has specified the inflation coefficient is á = 0.5 and that the natural real rate of interest is 2%. At what level should the Fed set the federal fund..
what will happen to the hedonic wage function after the public relations campaign? what will happen to where each individual miner locates on the hedonic wage function?
How does the government decide on the amount of pollution to allow? What are the potential costs and benefits associated with the regulation of pollution? What are the potential problems associated with employing outright regulation to deal with poll..
Cost of a part increases by 3$ every 6 months. If the cost for the first semiannual period is expected to be $85, what is the present worth of the cost for a 4-year time period at an interestrate of 1% per month?
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