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Explain why trade liberalisation has the same effect on an economy as an increase in the aggregate productivity of an economy (i.e. that the average output per worker increases).
Utilizing the Solow Growth Model describe long-run growth in an economy. Explain why an economy should strive to reach its golden rule steady state level.
Use the following information from a company's pro forma financial statements to calculate the following profitability ratios for the firm, assuming that all stocks are common stocks:
Illustrate what happens if the government is trying to stimulate the economy with their spending, but this leads to a greater output than projected.
The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows-What is the price elasticity of demand if price equals $500?
The cenima manager observes that the increase in price causes attendance at a given movie to fall from 300 persons to 200 persons.
Explain how banks are financial intermediaries. What are reserves? What are excess reserves? Explain how the Fed can affect the quantity of excess reserves in the banking system
Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial economics) were interviewed regarding the effect on the firm they both work at.
A rise in average variable price always increases the degree of operating leverage for firms making a positive net profit.
President Obama campaigned on the theme that he was going to reduce taxes for 95% of working Americans. Why would such a campaign promise be difficult to put into practice?
When watching at our economy, you will determine that government expanding is very important to our overall output of our economy.
Consider two individuals considering how many iced coffee drinks to buy during the coming week.For each person determine how many drinks will be bought during the week.
Explain the difference among comparative advantage and absolute advantage. Explain how economies benefit with specialization and trade.
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