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A firm has the production function Q = KL2, where K is the amount of capital and L is the amount of Labor. The cost per unit of K is 3 and the cost per unit of L is 2. The optimal number of labor to produce 72 units is:
-4 -6 -7 -9
Suppose the firm 1's supply curve is Q = 2P + 20 and firm's 2 supply curve is Q = 2P - 10. What's the function that describe the total market supply when P is between 4 and 5?
-Q= 4P - 10 -P = 1/2Q - 10 -P = 1/2Q + 5 -Q = (4P +10)/2
Impact of trade restrictions between USA and China on the Australian economy
Suppose the government increases purchases in an economy with a recessionary gap. How would this policy affect bond prices, interest rates, investment, net exports, real GDP, and the price level? Show your results graphically.
Is the USA government implementing an expansionary fiscal policy, which has been effectively giving the economy the right boost? Why or why not?
Identify at least two changes that may occur for Social Security and Medicare benefits in the next 20 years. Then, describe key policies that the U.S. government could implement in order to ensure positive changes for Social Security and Medicare ben..
IS-LM-FX Model with Floating Exchange Rate... For each of the following situations use the IS-LM-FX model to illustrate, first, the effects of the temporary shock, and then the policy response. (Note: Assume the central bank responds by using monetar..
All else equal, in an open economy, how would an increase in the marginal propensity to import (MPI) affect the government purchases multiplier?
Franchising in China is a relatively new and growing phenomenon which has gained momentum since the 1990s. Among the franchising pioneers in China are large and well-known food and beverage brands, such as KFC and McDonald's. What did Wang do as he p..
Seems to me that it would continnually rise as P increases since demand remains unchanged?
Menu costs arise from the way inflation: Unit-of-account costs arise from the way inflation makes... Shoe-leather costs arise from the way inflation..
Assume that someone has inherited 2,000 bottles of wine from a rich uncle. He or she intends to drink these bottles over the next 40 years. Suppose that this person’s utility function for wine is given by u(c(t)) = (c(t))0.5, where c(t) is each insta..
For the Keynessians, as for the classicals, there is money neutrality in the long-term for the theory of aggregate supply. However the short-run is a different issue. What happens in the short run as the money supply increases? What happens to the pr..
Teak Furniture Co. is considering a new three-year expansion project that requires an initial fixed asset investment of $2,640,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be wo..
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