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The Ascot Corporation, which produces stationery, hires a consultant to estimate its production function. The consultant concludes that Q = 0.9P + 0.06Lwhere Q is the number of pounds of stationery produced by Ascot per year, L is the number of hours of labor per year, and P is the number of pounds of paper used per year. Does this production function seem to include all the relevant inputs? Explain.
In which cases are the Coase theorem's assumptions are likely to be true? Explain.
Does it matter if a central bank (Fed in US) is independent of the government? Why do you think that matters? What would happen (or likely to happen) if Fed was not independent of the US government? Can you think of any country that their central ban..
Suppose that Congress enacts a significant tax cut with the expectation that this action will stimulate aggregate demand and push up real GDP in the short eun. In fact, however, neither real GDP nor the price level changes significantly as a result o..
In recent years the States of Colorado and Washington have (for all practical purposes) legalized the recreational use of marijuana. Both advocates and opponents claimed that such laws would have observable effects on public revenues and expenditures..
Should a firm respond and adapt to the environment or should the firm seek to shape and adapt the environment itself?
What is the equilibrium interest rate in Moola? What is the level of investment at the equilibrium interest rate?
Discuss Fully. "Given that labor remains relatively immobile within Europe, the European Union's success in liberalizing its capital flows may have worked perversely to worsen the economic stability loss due to the process of monetary unification."
You are considering auctioning a Leonardo Da Vinci original sketch. You entice four bidders to come to your auction.
Briefly explain the disparities we observed in level of economic development in the world today. According to easterlin, why is substantial formal education system necessary for sustain economic growth? what are some of the characteristics of that ed..
A liquidity trap is a condition where the money demand curve is perfectly elastic. Using the new Keynesian sticky prices model, show what happens if the monetary authority tries to use monetary expansion when a liquidity trap exists.
Discuss how UPS aligned their ICT strategy to the organisation's strategy
Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a school of industrial relations, are arguing over government intervention. Caroline: The usefulness of government intervention in the economy is a long..
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