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Would the following events usually lead to capital deepening, or not? Explain briefly.
a. A rise in investment in physical capital.
b. Many experienced teachers, discouraged by low pay, leave the education system for alternative jobs elsewhere in the economy.
c. An increase in research and development spending that leads to many new technologies.
If domestic investment in an economy is smaller tha the economy's private domestic savings
hat drug is nearly through clinical trials, and is expected to produce an acceptable return on the investments that have been and will still need to be made in it.
According to Friedman and Phelps, when is the unemployment rate above the natural rate?
With the current level of capital is the marginal product for capital 0,12. The rate of depreciation is 6%, the nominal interest rate of a company loan is 8% and the expected rate of inflation is 3%. Should the company increase its level of capital? ..
Give two different causes of how an economy can experience stagflation. explain in words why rising prices decrease the multiplier effect of a shift in the aggregate demand curve. Think about the impact of an upward sloping aggregate supply curve and..
"Which side of the market, supply or demand, that bears the burden of a tax on a good or service depends upon the relative supply and demand:"
The marginal revenue received by a firm in a perfectly competitive marketplace is illustrating what
The demand for cigarettes is price inelastic, but not perfectly inelastic. The supply of cigarettes is elastic, but not perfectly elastic. If there were no price controls or other complicating regulations, what would a model of supply and demand ther..
Monopolies can sometimes find themselves in difficult financial situations that lead to losses. Suppose Mr. Burns Power Company has a monopoly for providing electricity in Springfield. What happens to the market when Mr. Burns raises the price he cha..
What is the smallest per product unit subsidy that must be paid to the monopolist in order to induce it to produce 7 units of its product?
Redstone Clayworks, Inc. is located in Sedona, Arizona and manufactures clay fire pits for patios. They are one of about two dozen firms around the world that manufacture and sell clay fire pits for retailers such as Home Depot, Lowe’s, Front Gate, a..
What are some of the top reasons of consumers reporting lower life satisfaction, even though their purchasing power has recently increased?
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