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1. What is the role of aggregate demand in eliminating the GDP gap? How does the slope of the AS curve affect the fiscal policy actions necessary to eliminate the GDP gap?
2. In what ways are government deficits harmful to the economy
3. Define and give three examples of automatic stabilizers.
The average cost is AVC = 3500 - 6Q + 0.005Q square If the industry is competitive, estimate the shut-down price. If the market price is below shut-down, regardless of fixed costs, explain why the firm should shut down.
What is the exchange rate? How is it determined? What role do adjustments in the exchange rate play in ensuring that capital inflows equal the trade deficit?
a Caribbean wedding was less than $10,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the .05 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised? 8.6 9.2 10.4..
How much profit would be made if the same price were charged to all buyers (no price discrimination)? Discuss the difference from part b.
In a hypothetical economy, the annual velocity of money is 10,and level of real output is $800 billion. In year 1, the economy'smoney supply is $100 billion and in year 2 it is $112 billion.Calculate the rate of inflation between years 1 and 2
"South Asia has a lower income per capita than sub-Saharan Africa." Comment on the validity of this statement? What is the meaning of a "colonial legacy"? Discuss any disadvantages and possible advantages.
Estimated market shares for the cellular phone manufacturing market are given in the table below. If Samsung were to merge with Sanyo, the four-firm concentration ratio would be Firm Market Share Nokia 36% Fujitsu 3% Kyocera 3%
elizabeth M. suburbs makes $200 a week at her summer job and spends her entire weekly income on running shoes and designer jeans, because these are the only two items that provide utility to her. Furthermore, Elizabeth insists that for every pair ..
Show that when there are N equidistant firms, it is an equilibrium for all firms to charge p = ψ + t/N. Explain why the markup here is a decreasing function of the number of firms, whereas it was independent of the number of firms in the Dixit-Sti..
Take the thermal conductivity to be 0.3 W/m2 · K and the heat transfer coefficient of water to be 4911 W/m · K, what are the areas required for counterflow.
What is scenario analysis as applied to pricing and service decisions?
Insert your typed answers immediately following the corresponding question.Handwritten graphical responses are permitted; however, they too should be inserted immediately following the corresponding question (leave space so you can hand-draw your ..
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