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In the late 1990s, the U.S. economy experienced a period of extremely low inflation and extremely low unemployment. Use the AD/AS model to explain what sort of change in the economy would cause this. Include a graphical analysis in your answer, and provide two examples of what might bring about this event.
What is the difference between the rate of return between dollar and euro deposits? Is the prevailing exchange rate at an equilibrium level?
Compute the numerical elasticity of long-run demand. Is it unitary, elastic, inelastic, etc. Explain why would consumers demand 0 minutes in the long run if the price was $.30 per minute.
A business called TopClass, Inc. has the following Costs and Benefits: Initial Cost: $70,000, Annual Costs: $7,500, Salvage Value: $10,000, and Benefits: $25,000 for years 1 and 2, $35,000 for years 3 and 4, $25,000 for years 5 and 6. The MARR is 10%..
Solve for the amount imported, consumer surplus, and producer surplus. Suppose a per unit tariff of $64 is imposed by the government. Solve for the consumer surplus, producer surplus, government revenue and total surplus with the tariff.
The Chief Financial Officer, Mr. Smith told him it was impractical because it would require the issue of common stock at a cost of 16 percent to finance the purchase. Is the company following a logical approach to using cost of capital?
q1. labor is a resource that is necessary to produce many goods. if the price of labor falls says the economist the
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
Evaluate the strength of your brgaining position for each option. Which of these would be the most advantageous?
Cyclical budget balance of the US government explains what should be the budget situation over the expected business cycle of the US economy. Therefore, cyclical budget balance =
If a firm is able to cover its variable costs by operating in the short run then, at its best output level, the______.
Under what circumstances is objective function more important than constraints in a linear programming model. Under what circumstances are constraints more important than objective function in a linear programming model.
Incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements.
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