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Explain short-run and long-run effects on the US GDP and the price level for the following events. Assume that policymakers take no action.
1. Technological breakthroughs increase productivity of American workers.
2. Recession in Eurozone countries causes them buy less of the US exports.
3. Federal government increase spending on public school system.
4. S&P 500 stock index falls for several weeks which affects consumers' wealth.
Assume there are two types of consumers: type A consumers have a demand Q = 10 ? P for widgets, and consumers of type B have a demand Q = 5 ? P. Assume that there are 10 consumers of each type. (a) Calculate the market demand.
Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. But many economists think that, to understand economic recession, it is more significant to look at investment than consumption. Why?
Briefly explain 2-3 methods currently being used to encourage economic growth for the typical firm in Hong Kong and for the typical firm in Singapore.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee.
Colin faiths that the number of job offers he will get depends on the number of courses. He concludes from observation that the following figures are typical.
To maximize total income should the price be increased or decreased
What is the relationship between poverty and fertility? Give examples of how government policies can affect the intermediate determinants of fertility.
Identify and analyze the factors that have driven growth in real GDP - Identify any recent events or changes that have caused an increase in GDP but not a correlating increase in our nation's standard of living.
Recently, a troubled bank borrowed $800 million from the Federal Reserve. Describe the impact this event had on the monetary base.
Suppose you are the production manager for Widgets, Inc. Your job is to produce a fixed amount of output at the lowest cost possible. When you take over the position, you find that the price paid for a unit of labor is $20 (W = $20), and the price..
everkleen pool services has fixed costs of 3500. the manager of everkleen has estimated the following marginal cost
Explain how might this allocation under allocation get resolved via the means suggested by the coase theorem.
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