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Frank receives an annuity of $71568 at the end of each year. The amount he receives decreases by 3% each year. If Frank deposits the annuity in an account paying 9% compounded annually, how much will Frank have in the account at the end of 8 years?
Suppose a private closed economy has an MPC of .8 and a current equilibrium GDP of $7400 billion. What is the multiplier in this economy? Now suppose the economy opens up trade with the rest of the world and experiences net exports of $20 billion. Wh..
Describe demand and marginal income curves faced by a industry in a purely competitive market. Are they different from those faced by a industry in oligopolistic competition.
Three people are voting for President. The first person prefers Donald Trump to Jeb Bush to Hilary Clinton. The second person prefers Hilary Clinton to Donald Trump to Jeb Bush. The third person prefers Jeb Bush to Hilary Clinton to Donald Trump. Pre..
What are synonyms for increasing returns to scale? How did the one of the authors, Paul Krugman, relate these to international trade?
The reason economists use the midpoint method to compute elasticity is that:
Elucidate why an upward sloping aggregate supply curve is thought to weaken the impact of a rightward shift of the aggregate demand curve generated by an increase in government spending in the short run.
Unlike the 1970s, when world oil prices skyrocketed,P the 1980s were a decade of falling oil prices. From 1981 to 1986 the price of a barrel of crude oil fell from $42 to$15. Consequently the exploration for and production of oil in the world declin..
Explain and illustrate with diagrams the differences between diminishing marginal returns and decreasing economies of scale and cite causes and examples.
Provide an example to discuss how special interests can succeed in perpetuating policies that are opposed by the majority of voters because the costs of organizing and motivating groups to take political action increase with group's size.
Suppose that the K/L ratio is higher in Germany than in Britain. What would you expect to happen to wages in Germany as trade took place between the two countries? Why?
Economists generally dislike the restriction of trade because it:
GDP and the Multiplier Application. Most estimates indicate that the marginal propensity to consume in China is approximately 0.50. If we ignore a rise in the price level generated by a boost in aggregate demand that results from an increase in real ..
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