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Choose two of the five questions below and answer them in essay format. Each of your responses should be a minimum of 300 words in length, include a minimum of three key terms from the course so far, and any outside references used must be cited.
Currently, every book it sells is priced at $10.50. Show strategy to offer a discount that lowers the price of a book to $9.50, a 10% reduction in price using the midpoint formula.
Write a thorough analysis of unemployment, defining the various types of unemployment, full employment, and the natural rate of unemployment. Describe the impact of unemployment on the economy and your solutions to lower unemployment. Remember to ..
Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.80Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 40, G =20 and Xn = 10...
All of the following are instruments of fiscal policy except
Assume that the economy is initially in equilibrium at potential GDP. Use an AD-AS graph to show the effect of an increase in government purchases on the price level and the output level in the short run and in the long run. Explain what is happening..
A set of cash flows begins at $200,000 at the end of year 1. It deceases by 10% at the end of year 2 and so on, until n = 10 years. If the MARR = 8%, what is the PW of the flow? Lucky Linda, a very good Avon salesperson, is averaging $100,000 per yea..
What factors influence a firm's competitive strategies? How would global competition affect those strategies? Use examples to support your answer.
One British pound exchanges for 1.6 U.S. dollars. One dollar exchanges for 81 Japanese yen, or for 6.2 Swedish krona. What is the exchange rate between the pound and the yen, between the pound and the krona, and between the krona and the yen? Draw a ..
What are two reasons why there may be a short-run trade-off between unexpected inflation and the unemployment rate. How do each of the following sources of real business cycles would effect the economy:
Explain how an economy with a shortterm equilibrium below the longterm equilibrium will adjust to bring the two into alignment. Explain how an economy with a shortterm equilibrium above the longterm equilibrium will adjust to bring the two into a..
Time for a lump sum to double If you deposit money today in an account that pays 5.5% annual interest, how long will it take to double your money?
A firm uses steel and aluminum to produce auto parts. The current input mix used by the firm is such that the marginal product of aluminum is equal to 800 units, while the marginal product of steel is equal to 500 units. Please explain in words what ..
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