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When an inefficient firm or a firm producing a product that people no longer want goes out of business, people are unemployed, but that's part of the normal process of economic growth and development; the unemployment is part of the natural rate and need not concern policy workers. Discuss that statement and its relevance to the economy today.
In the text, we considered a sequential move game in which an entrant was considering entering an industry in competition with an incumbent firm. Consider now that the entrant, if fought, has the possibility of withdrawing from the industry (at a..
Decide if the values of the goods produced are included in the 2006 GDP and explain your reasoning.
Using the concept of opportunity cost, explain why in developed countries with higher average incomes there is more support for costly environmental controls.
If the full-employment level of Y is $250, what fiscal policy might the government follow? d. Suppose Y = $200, C = $160, S = $40, and I = $40. Is Nurd's economy in equilibrium
Illustrate what is the difference among nominal and real quantities and why make the distinction.
Given the following information, compute the real interest rate for years 2, 3, and 4. Suppose that each CPI number tells us the piece level at the end of each year.
Explain how each of the following would cause the yield curve to shift if between now and next year:
Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.
Assume the total demand for fish and the total supply of fish per month in the Kansas City fish market are as follows:
Find the number of physicians to be located in each of the areas if the physicians are income maximizers - Population Index
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to describe the equilibrium level of real GDP and prices if the economy is operating:
Explain the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.
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