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What is the difference between Real GDP and nominal GDP, and why do we care?
How effective would these actions be if banks remained re- luctant to make consumer loans while households remained reluctant to obtain loans? Briefly explain.
Why is the demand for labor more elastic in the long run? The skills required for gold miners and coal miners are very similar. Suppose the price of coal declines --- what is the expected impact of thsi change on the labor supply curve for gold miner..
Suppose that the International Monetary Fund (IMF) is concerned about currency depreciation in a small open economy. Use the basic version of our exchange-rate model for your answers. Illustrate graphically the impact of the IMF proposal on the excha..
A firm using two inputs (call them “capital” and “labor”) has an efficient combination of capital and labor levels when:
Assume a constant marginal rate of substitution at 6 for all possible consumption bundles (the bundle includes only goods 1 and 2). Although the price of good 1 decreased from the previous equilibrium, the ratio P1/P2 is still greater than 6 (as it w..
Illustrate what happens to inflation is indeterminate; it could be either higher or lower than in the standard model.
Explain what happens to the elasticity of demand for labor in a given industry after which of the following events: A new manufacturing technique makes capital easier to substitute for labor. There is an increase in the number of substitutes for the ..
Describe the equilibrium price and sales of X. Let PY = $10. Determine whether X and Y are substitutes or complements.
Assuming that the various activities that need to be performed in the manufacturing process are considered labor operations, draw a value chain level diagram that thoroughly depicts the duality relationships between paired events that lays behi..
Depreciation taken in the third year if the machine is also sold during the third year.
Explain (with the help of an example) the concept of derived demand for factors of production. The answer must be explain the concepts as if your explaining it to a person who have no knownlege with the subject.
Two power plants are currently emitting 8,000 tons of pollution each (for a total of 1,600 tons). Pollution reduction costs for Plant 1 are given by MCR(1)=.02Q and for Plant 2 by MCR(2)=.03Q, where Q represents the number of tons of pollution reduct..
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