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1) Suppose that there is a natural disaster that destroys part of the nations capital stock.
(a) Determine the effect on aggregate output, consumption, employment, and the real wage, with reference to income and substitution effects, and explain your results.
(b) Do you think that changes in the capital stock are a likely cause of business cycles? Explain by referencing your results in part a and the key business cycle facts
Compute effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.
A market in which there is an additional transaction that would benefit a buyer, a seller, and any third parties affected by the transaction is called. In the case of spillover benefits or costs,
“Attempts to stimulate an economy with expansionary monetary policy will lead only to a loss of some of the country’s international reserves and to no permanent change in income under a fixed-rate system.” Agree? Disagree? Explain.
In the USA buying and selling of human organs is illegal. Those who need organs cannot buy organs from the market and those who donate organs cannot sell their organs. We also know that lot more people are waiting for organs than the number of human ..
An engineer invested $10,000 in the stock market. For the first six years, the average return was 8% annually. For the next four years, the return as 4% annually. What is the value of the account after 10 years? What is the effective annual rate of r..
How did Samsung’s unveiling of the galaxy S5 affect the demand for the S4? What determinant(s) of demand changed? How did Wal-Mart’s price cut compensate?
Under its present policy of purchasing 5,000 sinks per order, what is Plumbing Supplies total annual inventory cost? Calculate the Economic Order Quantity for Plumbing Supplies Inc.
Consider an economy with the production function Y = L^(1 / 3). Derive the Labor demand Curve. Assume M s = 45 and k = 3 . What is the equation of the aggregate demand curve for this example? What is the price level? What is the nominal wage level.
The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
Imagine that you have a fixed 30-year interest rate for your mortgage, and the economy has experienced unanticipated inflation.
q1. apparent motion is dependent on factors other than isi. describe the various factors that would affect ones ability
What is the amount of 10 equal deposits that can provide five annual withdrawals, where a first withdrawal of $2,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of $500 per year, if the interest rate is 10% compou..
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