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The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
a) A reduction in the cost of fertilizer that is sold to corn farmers.
b) The market price of corn falls.
c) Suppose that the farmer now markets his corn as a special blend which is different than all of the other corn offered for sale in the marketplace. How would this action change the farmer's cost curves and/or demand and marginal revenue curves?
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
Assume that the economy starts in steady state. According to the Solow growth model, how would each of the following affect consumption per worker in the long run, Explain?
Discuss, relating in part whether such highways are public goods and whether or not privatization should work.
What was the growth rate of nominal GDP between 1999 and 2000? (Note the growth rate is the percentage change from one period to the next).
Explain what happens to the nation's aggregate supply curve, the short-run equilibrium level of output, and the price level if:
Suppose that deterioration in the education level of the U.S. population reduces the marginal product of labor.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
Account for the effect of the two proposed fiscal policy actions in the short run and long run. This includes a description of the consequences of relevant macroeconomic variables.
Compute the level of GDP per capita in each country measured in local currency. Compute the marker exchange rate between the currencies of two countries.
You are a budget analyst in a California State legislative budget committee and have been asked to prepare a policy brief on the budget issue for the state.
What is the marginal propensity to consume. What is the slope of the consumption function (you should give a numerical answer, not a formula)?
In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.
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