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In the last years of the 1980s exports increased dramatically. The effects on the U.S. economy include, ceteris paribus,
A) higher unemployment, lower prices, higher interest rates.
B) lower unemployment, higher prices, higher interest rates.
C) lower unemployment, higher prices, lower interest rates.
D) higher unemployment, higher prices, lower interest rates.
Suppose the production function for oranges is Q = k^1/3 L^1/3. Suppose the production function for pasta is Q = 4kl. What is the long-run optimal input combination when Q = 16 , r = 4, and w = 36 ? Does this cost function have increasing or decreasi..
Other things equal, what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects of the equilibrium price level and the level of real output.
Suppose the demand for good X is Qdx=10-2Px + Py +M .the price of X is $1 the price of good Y is $10 and income is $100 given these prices and income how much of good X will be purchased?
Suppose a manufacturer estimates its marginal cost at $1.00 per pack, its own price elasticity at -2, and sets its price at $2.00. The company's settlement obligations are expected to raise its average total cost per pack by about $.60. What effec..
In this discussion, you will explain the role of the business cycle in government and private sector decisions. Data on GDP and economic growth are considered lagging indicators because they report information on what is already known. How reliable a..
Suppose that one year has elapsed, you have received the first payment of 600$, and the market interest rate is still 5%. How much would another investor be willing to pay for your security?
Austerity measures implemented in several European countries will mean lower level of government expenditures for these countries? For these countries, this would cause
A sudden decrease in the market demand in a competitive industry leads to
Assume that a country’s real growth is 2 percent per year, while its real deficit is rising 5 percent a year. Can the country continue to afford such deficits indefinitely?
The following table lists the name, gender, height and reservation wage of 10 persons willing to work as firefighters in Timber Creek. What is the lowest wage that Timber Creek must pay to hire five firefighters? You answered the question $380/week (..
Illustrate what is the cost of producing 10 units in the short run? First conclude how much labor is needed.
In 2008, the Board of Directors and shareholders of Anheuser Busch agreed to be acquired by a Belgian Brewer (InBev). Prior to the merger, InBev made many pledges to AB regarding how the company would operate after the merger, how its employees would..
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