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John has a job that requires him to travel 3 of every 4 weeks. He has an annual budget and can travel either by train or by plaine. The airline on which he typically flies has a frequent traveler programme that reduces the cost of his tickets according to the number of milels he has flown in a given year. When he reaches 25000 kilometres, the airline will reduce the price of ticket by 25 percent for the remainder of the year. When he reaches 50000 kilometres, the airline will reduce the price by 50 percent for the remainder of the year.
Graphically illustrate john's budget line, with train kilometres on the vertical axis and plane kilometres on the horizontal axis.
Will recessions starting in the US be more easily transmitted to Canada under a fixed or flexible exchange rate system. Use the appropriate graphs to illustrate your discussion.
How much is equilibrium level of income or output if Fed decides to set the rate of interest at 10 percent (r=0.10).
Suppose that GDP is 5,000. Consumption is C=1,000+.3(Y-T). Investment is I=1500-50r, where r is the real interest rate. Taxes are 1,000 and government expenditures are 1,500.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee.
Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.
Expalin how are the current real stock of money in the U.S. and real interest rates computed.
What happens to aggregate demand when transfer payments and the taxes to pay them both increase by the same amount?
Acura and Volvo offer warranties on the automibiles, where wA is the number of years of an Acura warranty and w - V is the number of years of a Volvo waranty. The revenue for Firm i, i = A for Acura and V for Volvo is TRi=27,000wi / wA +wV. The fi..
Elucidate what happened in the simulation as you increased and lowered spending and income tax rates
The Mineola Company hires a consultant to determine the relationship between its profits and its output. The consultant reports that the relationship is
A producer produces good y using inputs x1 and x2 according to the production function y = x1^(alpha)x2^(beta) where alpha + beta
Lawn mowing services are supplied by a host of individuals in the suburb of Westbrook. Demand and supply conditions in the perfectly competitive domestic for lawn mowing services are:
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