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Explain the effect of an increase in exports on the equilibrium GDP in the Keynesian income-expenditure model. In your answer, carefully show the new equilibrium and explain the adjustment to the new equilibrium.
Joe's utility function is U (A,B)=AB^3. Compute Joe’s expenditure function. Using the expenditure function compute the income increase (in percentage terms) that Joe needs to maintain his original standard of living when the price of basic goods doub..
Macroeconomic models with demand-determined output are usually built on the assumption that goods (or labour) markets do not clear because prices (or wages) do not instantly adjust in response to various shocks. Explain intuitively why any individual..
Company B shared its idea to the world and and now sells its product to many businesses. They earn a profit of 2 million.
What is the after-tax rate of return Shellout will receive from this equipment investment?
Suppose a certain state increases the license fees that physicians must pay from $500 to $2000 per year. Trace out the impact of the increase in fees an average cost, average variable cost, fixed cost, and marginal cost for physicians operating in th..
Suppose the demand for olive oil is highly inelastic. Also suppose that the supply of olive oil is fixed for the year. If the demand for olive oil suddenly increases because of a shortage of corn oil, would you expect a ________ in the price of olive..
Briefly explain the "pros" and "cons" of a government policy of "managing"the country's foreign exchange rate as compared to a policy of letting the exchange rate "free float" according to prevailing market forces.
How does the US employment level affect the US monthly trade deficit?
With continued applications of fertilizer, you should be able to grow enough wheat to feed the entire United States. Does this statement make economic sense
q.jake takes 40 minutes to fry a chicken and 2 minutes to toast a slice of bread. his brother elwood takes 20 minutes
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil. Explain, using economic terms, why this is so.
Why might a firm prefer that employees telecommute? Can you think of a way this might reduce production cost, and so shift the supply curve to the right?
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