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Two identicial countries Alpha and Beta can be described by the IS-LM model in the short run. The governments of both countries cut taxes by the same amount. The Central Bank of Alpha follows a policy of holding a constant money supply. The Central Bank of Beta follows a policy of holding a constant interest rate. Compare the impact of the ax cut on income and interest rates in the two countries.
Studies indicate that the price elasticity of demand for cigarettes is about .4. If a pack of cigarettes currently costs $2, and the government wants to reduce smoking by 20 percent, by how much should it increase its price?
Consider the market for fresh produce in Snowland. Fresh produce is produced expensively in hothouses in Snowland.
Important information regarding Price Elasticity of Demand and Total Revenue
If gross investment is not large enough to replace capital that depreciates in particular year, is net investment greater or less than zero? What happens to our production possibilities?
In 1999, the Office of the Under Secretary of Defense projected that the ENR Building Cost Index (BCI) would increase from its 1999 value of 3423 to 4098 in 2012. If the actual value in 2012 was 5167, what was the difference between the projected ..
Construct a graph showing the outputs, and prices before and after the corrective taxes were imposed.
CEO pay appears to be on the rise again. Also executive pay in the US is about 20 times higher than it is in European countries.
The American Nursing Association (ANA) reports that there is a nursing shortage. Develop initiatives to move nurses through graduate studies more rapidly.
As consumer surplus is closely related to the supply curve for a product, producer surplus is closely related to the demand curve for a product.
I am planning giving a patent for a new drug. The public demand is given through: P=120-10Q, where Q is quantity of the drug and P is price. If the marginal cost of production is given by MC = 2Q,
Lets say that as an worker of the World Bank that I have been proposed to research the requires of a country with a particular economic concern.
Why would the firm price it differently in different countries. Illustrate what do you think will happen to the price over time.
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