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Q1. Compare and contrast inflation and deflation. What are some of the damaging effects that each has on an economy? What would be monetary policy prescription to reduce or eliminate each? How would deflation affect your business or a business you are familiar with?
Q2. A perfectly competitive firm operates in the short-run with labor as its only variable factor. Its production function is: Q = -L3 + 10L2 + 88L where Q is output per week measured in tons and L is the number of workers employed. The weekly wage is $324 and the product sells for $3.24 per ton. (a) At what weekly output is marginal cost equal to average variable cost? (b) What is the minimum product price at which the firm will operate in the short-run? (c) How many workers should the firm employ to maximize profits? (d) Calculate the firm's point elasticity of demand for labor at the equilibrium in (c) above
The government wants to increase real GDP demanded to $15 trillion at the given price level
Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
What are the informing factors of global interdependence, including the economic factors, political dynamics and cultural differences.
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
Explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
Assuming that your opportunity cost funds interest rate is 5% which refrigerator would you buy and why.
Consider a small economy in which consumers buy only two goods pies and tarts. In order to compute the consumer price index for this economy for two or more consecutive years.
Divide the Banzhaf power index by the number of votersin state. Are votersin small states or are votersin big state more powerful, according to this measure.
The difference between the cost to produce the CDs and the price you paid for them spending $30 on two new CDs spending $30 on dinner and a movie with your friends.
Distinguish between the two types but knows the probabilities of each type. What would be the result in this market for loans.
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