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Fran lends Bob $1000 and next year Bob will repay Fran 51100. What must the expected inflation rate be for Fran to earn an expected 3% real return? Show your work.
Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day. Is the mix of doctors and nurses the clinic is presently using optimal? Explain.
Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.
Re economies and diseconomies, suggest factors that will make the average cost of production lower for a larger firm than for a smaller firm. What are factors that may force up the average cost of production?
What is the relationship among AD, SRAS, and LRAS, as explained in the text, when the economy is into Long Run equilibrium? Explain. Why and how might a Supply Shock (OPEC oil embargo) lead the US into Stagflation? Why are Long-Run effects of an incr..
In 2008, a firm has receipts of $12 million and expenses (excluding depreciation) of $5 million. Its depreciation for 2008 amounts to $3 million. If the effective income tax rate is 35%, what is the firm’s net operating income after taxes (NOPAT)?
Solve the following system of simultaneous equation and graph the results. Y = 50 +2x (1) Y = 100 -0.5x (2). Assume that the intercept of equation 1 from problem 4 has increase by 5 units. Graph the new and old equations. Assume that the slope of equ..
After 10 years of stamp collecting, what is the future worth of the stamp collection?
Small mistakes are the stepping stones to large failures. How might this saying apply to the simple model of the firm and marginal analysis? Do you agree? In your responses
Explain why poverty in the poor nations is a vicious cycle.
What are barriers to entry? How do they relate to the creation of potential long-run monopoly profits? Provide an example of a barrier that can lead to monopoly. Is it possible for an industry that is currently a monopoly to become a competitive mark..
Monopolistic Competition and Oligopoly (gaming systems) we have three major competitors Nintendo, Sony, and Microsoft,
Why should the New Zealand'd government increase housing affordability?
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