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At a monthly staff planning meeting, the outlook for the national economy was a topic of discussion. During the discussion, one participant noted that gross domestic product (GDP) was expected to increase only slightly for the coming year. Another commented that a slight increase in the expected GDP did not necessarily mean an increase in business activity or output. Still another participant asked about the role of GDP per capita as it relates to planning. The partner-in-charge of the meeting asked that, prior to the next planning meeting, you prepare and distribute a brief memorandum defining and describing (1) GDP, (2) real GDP, and (3) GDP per capita, and how each may be used for analytical purposes. Type your communication below the line in the response area below.
After the Federal Reserve increases the growth rate of the money supply, what is the new total spending growth rate? Now think about the point that the economy ends up at that is the new long run equilibrium. What is the value of expected inflation f..
Explain a pricing strategy which would increase profits compared to a single price profit maximizing strategy. Be sure to include a graph which explains your demand, marginal revenue, and marginal cost.
How do I find the level of output (Q) that revenue is maximized?
Describe the innovation life cycle proposed by Abernathy and Utterback. Does the model provide a useful tool to guide and manage the innovation process? Do you see any weak points in the model?
Discuss the types and relationships of costs within multiple markets. Include descriptions and formulas, as well as, comments as to their level of importance to a firm’s long-run and short-run production strategies. Take account of opportunity costs ..
Cookie Monster consumes Ores (good 2, price p2) and homemade chocolate chip cookies that he buys from his mom (good 1, price p1). His utility function is u(x1, x2)=ln(x1+x2)+x1. A back-story for these preferences might be that he cares about total ca..
Economists discuss that there is an efficient amount of pollution abatement. Why is the efficient amount of abatement unlikely to be either zero or 100 percent?
Elucidate how a 20% decline in the cost of business travel would impact this company's budget if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour.
Is the Fed currently pursuing an expansionary, neutral, or contractionary monetary policy? What if any difficulties do you think may be encountered in implementing the current policy.
The demand and supply lines in a market are as follows: Give a graph and solve for equilibrium price and quantity. Now suppose a tax is imposed so that the price paid by the demander is $13 and the price received by the supplier is $7. Calculate the..
What are the pros and cons of trade restrictions? What are the pros and cons of free trade? Which is better in your opinion?
If a bank decides to hold less equity capital, then, other things held constant,
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