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1. Use the four quadrant diagram of the Classical model with the production function to determine:(a) the effect of a decrease in government taxes on Y, W/P , R/P, S ,r.(b) the effect of decrease in capital (K decrease ) on Y; W/P , R/P, S ,r
2. Consider a country where the velocity of money is constant. Real GDP grows by 3% per year, the money stock grows by 4% per year, and the nominal interest rate is 3%.
Using the approximate Fisher Equation what is the real interest rate in the economy specifiied above?
Households make four kinds of economic decisions. Assume you have two households with the same income. Household A has one income earner and Household B has two income earners.
Efficiency is a hot topic in the media regarding transportation, energy, and many other industries. Elucidate how perfectly competitive markets use or do not use resources efficiently.
Differentiate the structural change and managerial opposition hypothesis as they relate to the decline in unionism. Determine which view do you think is more convincing?
What would anything change if unemployment benefits were reduced such that the y-intercept of the MC curve increased four-fold. Show graphically.
Can the U.S. ever come out ahead from this quota? Why or why not? Can the ROW ever come out ahead? Why or why not?
What might be included in the "total cost" of acquiring and watching movie on DVD? What about the "total cost" of seeing a movie at the multiplex?
Vera is an impoverished graduate student who as only $100 a month to spend on food-Explain why Vera's preferences are of a very special type here. How would you graph them?
What measures the fed should take to decrease the unemployment value and expand the economy. Remember that the answer has to deal with monetary policy,
Sunrise Surf Corporation is considering to create 35 surfboards in a month if it can sell each board for $400. If it can receive $700 for each board, the company is willing to create 75 surfboards.
Asume you are analyzing the market for minivans. What will be the impact on the equilibrium price and equilibrium quantity of each of the following events on the minivan market. Justify your answer using the supply and demand model.
Illustrate what is the major pros of the real GDP measure. Construct a price index giving all products equal weight.
Market Value of the final goods and services produced in the domestic economy= $1,15,000 of which goods worth $10,000 are distributed among the Tsunami Victims. Net factor income to abroad= 4000 and the govt. is offering subsidies to the producers..
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