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Confused regarding the following questions:
1) Defend the argument that the GDP measure of output should be the final value of goods produced, not the sum of all the values of goods produced. Give an example supporting your stance. - am i supposed to talk about the fact that we should not double count goods and services? like cars as a whole and not tires, shields etc
2) Critically evaluate the following statement: 'The consumer price index (CPI) and GDP deflator both measure the changes in prices in an economy, but they differ in that the CPI measures inflation and GDP deflator measure deflation
If a country finds itself experiencing stagflation under a flexible-rate system, why is expansionary monetary policy unlikely to cure the problem?
Describe the economic principles that company executives should consider when developing a strategy or strategies that will maximize profits while minimizing incentives for competitors to develop competing products.
Show in an IS-LM and AS-AD graph the effects of an increase in government spending. Next, using the same graph, show how the economy will transition back to the natural rate of unemployment. Explain intuitively how this transition takes place.
For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality in the d..
A perfect competitor finds that the best it can do if it produces any output is to produce a daily output of 100 units which it will sell at the market price or AR of £10, but even then it would then make a loss. Under what circumstances would it ..
Calculate the price elasticity of demand for Nutella based on the price decrease from $5.85 to $1.75, which resulted in a 300% increase in the quantity
Find the level of consumption spending in the U.S. economy for the past 40 years. Also do the same thing for gross Investment spending, government spending, and net exports.
What does it mean to "buy securities"? What are some affects that buying securities has on the economy?
Explain why the Fed can attempt to target either changes in the money supply or changes in interest rates, but not both. Your response should be at least 75 words in length.
Explain how the method used to determine the profit- maximizing level of output in product markets (i.e., MR = MC) can be applied to the labor market to determine the most profitable number of employees a firm should hire.
Analyze in a minimum of 1,050 words, using this case study as the basis, the impact of currency manipulation on cross-border trade and investment activities.
What could have caused the negative demand shock? List at least 2 events. After the negative demand shock, while the economy is in Y2, what is the unemployment rate like compared to full employment?
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