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Question: Assume that there is a temporary increase in the productivity. Before the shock, the economy was in general equilibrium. (a) Does the general price level P increase or decrease in response to the increase in A? (b) Does the nominal wage rate increase or decrease in response to the increase in A?
Assume that the banking system has $200 billion in reserves. There are no excess reserves in the system. If the reserve requirement is decreased from 10 percent to 8 percent, what will happen to the level of excess reserves in the system
Prepare and organize thoughts for your presentation. Remember that your objective is clear for this presentation. You are required to summarize the article, identify and explain its purpose, and define key terms
Assume an airline flying on the New York - Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day advance purchase), and discount (14 day advance purchase) travelers.
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Explain why and how firms in competitive markets may apply mixed bundling. Provide a numerical example to prove your case.
Find the quantity at which diminishing marginal returns set in and if the monopolist's goal is to maximize profits, and the monopolist charges all customers the same price, determine the optimal level of output.
In addition to the apocalyptic negative shock to demand, we are also seeing a dramatic drop in oil prices. Briefly discuss how these two changes might interact.
1. Assume a production function Q = Aka L1-a where Q = 100, a = 10 and = 0.5 obtain the total cost function C = C(v, w,Q ) supply the necessary information , such as the equation costs. Show how you got the result .2. Suppose a demand function Q = ..
The problem belongs to Economics, Micro-economics and it is explain the calculating equilibrium price with increase in income of consumers with income elasticity of demand given. A diagram supporting the answer has been given in the answer.
Identify two concerns with using marginal implicit prices from hedonic wage studies for calculations of VSL. The concerns should relate specifically to hedonic wage studies, not generally to VSL.
If the future value of $1,000 invested for 2 years is $1,166.40, what is the underlying discount rate?
Discuss how the GDP might be understood orused differently
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