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U.S. consumer spending reached record highs in 2021 coming out from the covid-19 slump. It is expected that 15% of income is spent on imported goods and services. How could this affect the exchange rate of the U.S. dollar against our major trading partners?
Show the profit-maximizing price and quantity. Show the producer and consumer surplus. Show the deadweight loss from monopoly. What is the implied competitive equilibrium? Is the firm operating at a profit or a loss (how do we know)? If it’s operatin..
According to the equation of exchange, if total output is 2,000 units, the velocity of money is 5, and the money supply is $1,000, the average price per transaction will be
Compared to 2009, when the Great Recession ended, in 2014 the U.S. Bureau of Labor Statistics reported that about about 10 million more people
Does it make sense for us to punish a murderer when we are going to commit a murder ourself when we give death penalty?
Explain how can the central bank use the monetary policy to promote economic growth and fight recession.
The supply and demand curves for corn are as follows: QD = 3,750 - 725P QS = 920 + 690P, where Q = millions of bushels and P = price per bushel. Calculate the equilibrium price and quantity that would prevail in the free market. Calculate the loss in..
Are there any changes in the system that could improve savings rates? Should saving be the sole responsibility of individual citizens, or should corporations, financial institutions and markets, and government agencies have active roles in regulating..
Suppose an individual has the following utility function defined over wealth: U = U(√wealth). The individual has an initial wealth level of $20,000. What is the expected loss? What is the maximum amount this individual is willing to pay for insurance..
1. Opportunity Costs What do economists mean by "opportunity cost?" What are your opportunity costs in taking this course?
The long run equilibrium price level, however, remains unchanged at 120. By how much (in real dollars) has the long run aggregate supply curve shifted.
Draw Tom's production function, plotting the number of workers (L) on the x-axis and the number of output per hour (q) on the y-axis. For the rest of the questi
What is the difference between real and nominal GDP? Does GDP accurately reflect the nation’s welfare? Why or why not? How can a country’s GDP be manipulated? In your opinion, is the U.S. GDP being manipulated? Explain your answer.
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