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Does the country with the highest GDP per person have the lowest infant mortality or the highest life expectancy? Can poorer countries do well on these alternative measures of well-being? Could people be misled about differences in living standards if they only compared different countries' levels of GDP per person
Suppose that for every 10 new cars sold by new-car dealers, 9 are plums and only 1 is a lemon. Why is the equilibrium mix in the used car market different from the mix of new cars sold?
In this economy, all production output goes to either consumption or savings. The saving rate is fixed at s where 0
Consider the following balance sheet of Princeton Bank: Assets- Reserves 30, Securities 140, Loans 280, total assets 450. Liabilities+ Capital- Transactions deposits 300, Nontransactions deposits 140, Capital 10, total liabilities + capital 450.
Give an example of a game in which only one player has a dominant strategy. What is the Nash equilibrium?
The daily demand for Invigorated PED shoes is estimated to be where Ax represents the amount of advertising spent on shoes (X), Px is the price of good X, Py is the price of good Y, and M is average income.
Using this idea, explain why a deep recession could lead to an increase in the natural rate of unemployment. Which demographic groups do you think would be affected the most?
In your project, address the following questions: Using the elasticity estimates in the table above, classify the price elasticity demand as elastic or inelastic. Explain your reasoning. Explain the implications of those classifications on tax rev..
The following statement was released through FOMC following recent meeting on March 21. The Group, although hopeful for a future of moderate growth with moderating inflation,
What happens to the expected real interest rate? Explain why the subsequent path of the real exchange rate satisfies the real interest parity condition.
Do you believe that prices and wages in your model are covariance stationary? Why or why not, and how could you adjust your model accordingly
On her 23rd birthday a young female engineer decides to start saving toward building up a retirement fund that pays 8% annual interest, compounded quarterly (market interest rate). She feels that $600000 worth of purchasing power
If AD goes up by 40, since the multiplier is 5, GDP will rise by 200. But WHAT in GDP will rise. I see that I will rise by 40 (because MPI=0.2) and C will rise by 120 (because MPC=0.6). But 40 + 120 only reaches 160 and GDP is supposed to rise by ..
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