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Suppose the demand function for some good X is given by QDx = 1000 - 5Px + 3Py + 12M, where QDx is the quantity of x demanded, Px is its price, Py is the price of good Y, and M is average consumer income. This good is normal and goods X and Y are substitutes. [Hint: Determine the sign of the income and cross-price elasticity]I am supposed to determine if this question is true or false and explain why. How might I go about determining this?
Why is it profitable for the firm to pay efficiency wage when workers have better information about their productivity than the firm's do
The key to this discussion is marginal utility. How much marginal utility do you obtain from an additional newspaper versus how much marginal utility do you get from another snack? The key to this discussion is marginal utility. How much marginal uti..
It is believed that fiscal policy is more effective under a fixed exchange rate than a flexible exchange rate. Using the IS-LM model, illustrate and explain this differential impact for an expansionary fiscal policy.
an average worker in brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes while
why dont economists use the same cost data as accountant use? why are costs important in economics? how do firms
Which of the following is an exogenous variable in the model of a small open economy, but an endogenous variable in the model of a large open economy
1. (Time Value of Money) You can borrow and lend money at 18% in the market. You have $200,000. You are considering entering into a perfectly competitive market by starting a business today. You will need to pay $120,000 as your fixed costs for an..
A reduction in income will cause: a reduction in the supply of central bank money a reduction in the demand for currency and reserves an increase in the demand for reserves none of the above
suppose that the reserve requirement is 10 percent and the balance sheet of the peoples national bank looks like the
honda uses flexible plans in the manufacturing of its cars. discuss whether this method of production results in
Explain what is the short-run effect of a fiscal contraction (lower government spending for example)? What happens to the nominal wage rate during the process of moving from short-run equilibrium to long run equilibrium?
consider an economy in which the marginal propensity to consume is two-thirds prices are constant the multiplier is
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