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Measures of Output, Prices, and Employment
1. Suppose, in a two-sector model, that individuals receive the following payments from the business sector: wages $520, interest $30 rent $ 10 and profits $80. Consumption spending is $550 and investment is $90.a. Find the market value of output and household savingb. What is the relationship of saving and investment?
Explain how does the availability of substitutes affect purchasing decisions.
What is the main policy message of the AS-AD model, and how does it relate to the 1930s Keynesian revolution in economic theory? What should today's policy-makers assume about the natural rate of unemployment?
As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.
Discuss briefly what you think the way in which the HDI is constructed. (Briefly means no more than five lines of text. Excesses are severely penalised.)
In terms of expansionary or contractionary policies, which do policy do you see more in line with the politics of the Democratic Party.
Suppose you are provided with the following production relationships, where the input is fertilizer (pounds per acre) and the output is rice (cwt per acre). Using graph paper, please graph AVP, MVP, and MFC
Assume worker productivity increased at the rate what rate of increase in RGDP would be sustainable without increasing inflation pressures.
Suppose Firm Y's production function is given by the following Cobb Douglas equation
The industry will also incur expenses in the amount of $150,000. Explain how many shares must the industry sell to net $20 million after underwriting and flotation expenses.
Suppose no increase in the price of labor, how many workers will the bakery hire.
Vulnerability Analysis
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
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