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Recently, there has been a spate of instability throughout the world. The immigration crisis in the EU, and the political instability in parts of the Middle East.
a. Explain intuitively why the NCO curve slopes downward. Begin your explanation, by considering a decrease in the real interest rate.
b. Using the three panel diagram for the US, explained the effects of the political instability on the US economy. Determine what happens to the following: the real interest rate, national savings, investment, NCO, E, exports, imports, and net exports. [Note: If you cannot unambiguously determine what happens to any of the variables listed, clearly state that the effect is ambiguous, and discuss under what conditions the variable increases or decreases.]
An economy has a Cobb-Douglas production function: The economy has a capital share of a half, a saving rate of 24 percent, a depreciation rate of 3 percent, a rate of population growth of 2 percent, and a rate of labor-augmenting technological change..
Price elasticity of demand is an important tool for managers in a selling environment in decision what to put on sale. Discuss how managers of over the counter health care products could use the concepts of elasticity to maximize profit.
Steve’s preferences for hamburgers (X) and chicken sandwiches (Y) can be represented by u(X,Y)=X 0.5Y 0.5. Graphically decompose the total effect of the price change into an income effect and substitution effect. Plot hamburger consumption on the hor..
For each of the determinants of demand in Equation identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles.
Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-factors model. Currently, the prices of manufactured and agricultural outputs are $5 and $1, respectively;
What if you knew that in Firm A the quantity of labor demanded is 15,000 when the wage is $11 and 17,000 when the wage is $8.
Using carefully labelled demand and supply diagrams, show the impacts on equilibrium price and quantity in the following situations: New cars are normal goods. What will happen to the equilibrium price and quantity of new cars if the price of gasolin..
q.suppose that a person regards ham and cheese as pure complements- he or she will always use a slice of ham in
What is the probability of attendance between 39,000 and 45,000? e) What must the attendance be at a game, for that game's attendance to be in the top 1% of all games?
Illustrate what are the concepts gender planning, gender budgeting and gender mainstreaming mean.
Which of the following factors did NOT lead to the development of the Feudalist society?
Guest Corporation issued (sold) 1,000 shares of its no par common stock for $110 per share. The bylaws established a stated value of $100 per share. The transaction is recorded as an increase in contributed capital of a. $ 100,000. b. $ 110,000. c. $..
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