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Suppose an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP? Assume that population is 100 in year 1 and 102 in year 2. What is the growth rate of GDP per capita?
In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain?
Compute the coefficient of price-elasticity of supply for the seven prices ranges given above and complete the table.
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
Pam, having recently graduated from college, is looking to work for 2 years before she enters graduate school. She has received 2 job offers with the following salary structures:
The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
Discuss, relating in part whether such highways are public goods and whether or not privatization should work.
Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Explain why you would be more or less willing to buy a share of Apple Computers stock in the following situations:
Suppose that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
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?
Joan is deciding where to spend her spring break. If she goes to Cancun, Mexico, the trip will give her 9,000 utils of satisfaction and will cost her $300. If, instead, she travels to Florida, the trip will give her 5,000 utils of pleasure and w..
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