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What's the difference between inelastic demand and elastic demand?
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand. Explain what the Fed should do if it wants to stabilize aggregate demand.
Assume you are the plant manager for Bravo Pork Rinds, which produces pork products in a market that approximates perfect competition. Due to a slow economy, business has been slow and you are losing money every month. The owners have asked you wh..
Analyze unemployment and inflation data. Analyze interest rate fluctuations throughout Mistime period and their effects on other aspects of the economy.
Let B1(hat) and B2(hat) denote the estimated regression coefficients from a sample of size n for y = x1B1 + x2B2 + u. Show that b1 = B1(hat) + (X1TX1)-1X1TX2B2(hat) where b1 is the coefficient estimate from the regression of y on X1.
If a series of tornados damages factories and infrastructure in the industrial regions of the United State, a short term consequence is that
Experiment with the number of steps for binomial tree model until your numerical result stabilizes to within one cent of the result given through the Black-Scholes formula.
Assume that the required reserve ratio is 10%. If the Federal Reserve buys a $10,000 government bond from an individual in the economy, what is the initial effect on the money supply. What is the ultimate effect on the money supply
Examination of the company for which you are currently working (or a company with which you are familiar). Answer the following questions regarding this company.
Illustrate what have been the implications for the business environment facing foreign investors of measures taken by the Indonesian government since the onset of the East Asian financial crisis in 1997.
Suppose that the government increases expenditures by$150 billion while increasing taxes by $150 billion. Suppose that the Marginal Propensity to Consume(MPC) is .80 and theta there are no crowding out or accelerator effects.
Assume that potential rural-urban migrant would work for two periods ( of some length) in either the rural or the urban area.
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