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Between 2006 and the middle of 2008, oil prices rose sharply – from around $60 to more than $140 per barrel. By the end of 2008, however, oil prices had fallen even more sharply, to just over $40 per barrel. Consider these as two separate shocks. Also, ignore the housing crash and subsequent financial crisis we know was playing out concurrently. Using the AS/AD framework, explain how the economy would evolve in response to these shocks.
Compute the price of the machine, which will make purchasing or leasing to be equally costly.
Suppose that annual income from a rental property is expected to start at?$1,250?per year and decrease at a uniform amount of?$50?each year after the first year for the?17-year? expected life of the property.
Currently, boats rent for $500 per day and workers cost $100 per day. Suppose your company decided purchase 12 shrimp boats (Jenny 1 - Jenny 12). These boats are a fixed resource for the firm. Illustrate what is the short run total cost of produci..
Anation's consumption function (expressed in millions of inflation- adjusted dollars)is: C=200+.80*DI. what is value of autonomous saving.
Illustrate what did classical economists assume about flexibility of prices, wages and interest rates. Illustrate what did this assumption imply about self-correcting tendencies in an economy in recession.
Is the current Monetary Policy expansionary or contractionary? Why? What effect doe the Federal Reserve expect this policy to have on the US economy?
Chris is renting a house, and it does not have a refrigerator. A refrigerator is worth $3 every day because Chris will eat out less. Chris has a discount rate of 18%. Refrigerators usually last 5 years. How much is Chris willing to spend on a refrige..
Suppose utility had been leaner in wealth would this person willing to pay anything more than the actuarially fair amount for insurance.
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
Derive also graph the MC function. Conclude the cheapest way to produce 20 units. Conclude the cheapest way to produce 12 units.
Are unions good or bad for economy. How do unions at GM and Ford affect employment levels and wages How do unions affect or industries in terms of employment and wage levels.
Illustrate wwhat is the effect on the market for one hour of babysitting services in Middling today.
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