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What kinds of difficulties might be created for policy-makers who use the concept of 'potential output' to determine appropriate policies for the economy.
What is your total cost? What is your Average Fixed Cost? What is your Average Variable Cost? What is your Average Total Cost?
Mary's indifference map and budget constraint for goods x and y are shown below. If Mary spends all her money on x and y which bundle will she choose to maximize her utility?
If you had the power of the President, Congress, and the Federal Reserve, what would you do to stimulate the U.S. economy which is barely growing?
The risk premium is equal to expected gamble minus the certainty equivalent. In the Principal-agent framework, the principal can observe the effort exerted by the agent. Risk premium is always a negative number.
Explain how both the flow-of-product approach and the earnings approach can be used to measure GDP and the role profit plays in these calculations.
Suppose a government wishes to ensure that its citizens can afford adequate housing. Consider three ways of pursuing that goal. one method is pass a law requiring that rents be cut by one-fourth.
Consider a company that assembles electric toasters using labor and robots. Suppose that in 1950, robots were so crude that they were useless in the assembly of toasters, so that toasters had to be assembled entirely by hand. Now suppose that as a re..
Test an appropriate hypothesis and state your conclusion. (Make sure to check any necessary conditions and to state a conclusion in the context of the problem.)
Assume you are currently working in a government job that pays$20,000/year and you have $40,000 in an account earning 10% interest. You have the opportunity to buy a fruit orchardthat produces $23,000/year in revenue for a price of $50,000.
Using the data on health expenditure as a percentage of GDP for 2015, which country has the highest expenditure (as a share of GDP)?
Suppose that the State of Connecticut decides to subsidize the cost of purchasing a treadmill for cardiac patients, as prescribed by their doctors. Prior to the program, the equilibrium price of treadmills was $800, and the equilibrium quantity purch..
When president Roosevelt devalue the dollar against gold, this: In its role as lender of last resort, the Fed has authority to ____ to an _____ facing a _____ crisis. When Roosevelt devalued the value the dollar against gold, it _______ and ______
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