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“If a central bank decides to accommodate an adverse supply shock, it will intensify the inflationary effects.” Comment on this statement with the help of an AD-AS diagram.
In the US, doctors get reimbursement based on the quantity of procedures they perform. How might this relate to the observed increase in the medical care expenditures and what type of problems might this reimbursement structure lead to?? (In health i..
Suppose that you buy a bond for $100 that pays four percent interest per year. Explain how much money will you have earned when the bond reaches maturity in five years.
Peter Evans emphasizes that states have to play specific roles in order to promote economic development. According to him what are the roles of the states in economic development? Explain and discuss. Compare Evans’s arguments with the neoliberal the..
Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national saving increase? Show the relationship between China’s national savings, domestic invest..
N firms compete in a perfectly competitive industry. Market demand Q, for a good is given by Q=3000-50P, where P is the market price. For each firm I, the long run total cost function , C(qi) is: What is the long-run supply curve for an individual f..
individual industry like education, meat industry, tourism and agriculture. Choose any ONE industry in Australia from this list and discuss the reforms been done in that industry.
Find recent evidence in the Wall Street Journal and other business publications on how companies are expanding the use of techniques described in the opening case to ubderstand and impact character behavior.
If the face value of a 10% coupon bond is $10,000, what is the yearly coupon payment? If the yield to maturity of the above coupon bond is 8% and has 10 years to maturity, what is the present value of the coupon bond?
Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u (xy)= lnx + 2 ln y (MUx=1/x, MUy=2/y). Derive his demand functions for x and y.
Discuss the following situation (a) from the strictly legal viewpoint, (b) from a moral and ethical viewpoint, and (c) from the point of view of what is best in the long run for the company. Be sure to consider both short- and long-range consequences..
Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an improvement that has commercial value of $1 million.
If you have been offered $137,000 for a job in Los Angeles and $117,000 for a similar job in Dallas, elucidate which job affords you the highest purchasing power of the bundle of goods in the price index.
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