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1. Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. However many economists think that, to understand an economic recession, it is more important to look at investment than consumption. Why?
2. Suppose that a scientific breakthrough leads to the discovery of a new cheap source of energy. What would be the effect of this invention in the short-run and in the long-run?
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Suppose that a perfectly equal distribution of income existed in Disneyland. Which of the reccent residents would have the same income he or she has in present distribution?
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
What is the profit-maximizing price-output combination and what are the levels of the profits and consumer surplus at that point? What is Dead-weight-loss?
What are the two problems facing the Bank of Canada in trying to control the money supply precisely?
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
Overview of the project's objectives and scope
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
What is the difference between contractionary and expansionary monetary policy?
Draw marginal revenue function for this firm. What is the profit-maximizing price for this firm? On the graph describe the area, this represents the net loss to society resulting from the monopoly power conferred by the patent.
What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?
Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following ..
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