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Assume that a firm produces its output subject to the following production function: q = 20K0.5L0.6. Market input prices are r and w. The firm minimizes the cost of whatever output it produces. Use the Lagrangian method to determine the equation of the output expansion path.
Assume the required reserves ratio is .15,
the participation rate 60 percent, 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?
Think of ways in which the Government is actively involved with the purpose of changing the economy. Why does the Government use these tools of fiscal policy? What are the hoped for results? Do you agree the Government should be involved? Why or why ..
You make an investment of $12,000 in an account with an APR of 6% compounded monthly. (A) What is the balance in this account after 8 years? (B) If, after this initial 8 year period, you wish to make equal withdrawals at the end of each year for 5 ye..
First, discuss what is meant by the "natural real interest rate". Second, explain what effect each of the following will have on the natural real interest rate: (1) a reduction in government spending; (2) an increase in the nominal money supply.
In the short run ,lowering the federal funds rate shifts the aggregate demand curve----------so that the real GDP---------and the price level --------------
RTI Company’s master budget calls for production and sale of 18,000 units for $81,000; variable costs of $30,600; and fixed costs of $20,000. During the most recent period, the company incurred $32,000 of variable costs to produce and sell 20,000 uni..
Add the missing part (premise or conclusion) to make the following arguments valid. But don’t make them circular; make the conclusion follow from both premises but not just from one premise by itself. Use a Venn diagram. Every citizen with voting pri..
Elucidate he is considering hiring students on a part-time basis for $40/hour, do you think he should do so.
If the firm is producing at a quantity of output where marginal revenue exceeds marginal cost, then,
Suppose that you purchase a Treasury bond futures contract at $95 per $100 of face value. (LG 23-2) What is your obligation when you purchase this futures contract? If an FI purchases this contract, in what kind of hedge is it engaged? Assume that th..
An investment portfolio contains stocks of a large number of corporations. Over the last year the rates of return on these corporate stocks followed a normal distribution with mean 12.2% and standard deviation 7.2%. For what proportion of these corpo..
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