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How will planned investment spending change as the following events occur?
a. The interest rate increases as a result of Federal Reserve policy.
b. The U.S. Environmental Protection Agency decrees that corporations must upgrade or replace their machinery in order to reduce their emissions of sulfur dioxide.
c. Baby boomers begin to retire in large numbers and reduce their savings, resulting in higher interest rates.
Japan's rapid growth pushed its real GDP per capita above that of the United States. Growth rates in follower nations such as South Korea and Hong Kong averaged about 10 percent per year.
There are many brands of laundry detergent, all equally effective. Would you expect the elasticity of demand for any particular brand to be high or low? Explain.
A cafe catering for staff in a large corporation offers steak sandwiches and hamburgers as part of its menu. a) Recently corporation staff were awarded a 7.5% wage rise. your conclusion based upon your estimate of the own-price elasticity of demand. ..
Which segment of the population is one of the wealthiest in the U.S.?
Reinert maintains that the evidence is that North-South trade has a _______ negative impact on the wages of Northern unskilled workers, and that protectionism ___________ a reasonable response.
For several decades the labor force participation rate of women increased steadily but average hours worked per employed woman decreased steadily. Holding all other factors constant, could rising wage rates of women explain both phenomena? Explain.
You are the manager of a firm which produces also markets generic type of soft drink in a competitive market.
In general, the marginal cost curve is U-shaped as you learned in lectures and the textbook. However, exception exists. Please provide one particular industry as an example to illustrate that MC is not U-shaped.
Many economists claim that in a small open economy operating under a fixed exchange rate regime, the domestic central bank is powerless to control the money supply, and monetary policy is thus powerless as a tool to stabilize domestic output. Do you ..
Explain how a budget deficit might lead to an appreciating currency and a trade deficit. Explain the introduction of the foreign sector makes the fiscal policy tool of the budget deficit less effective in stimulating the open, as compared to the clos..
Firms in monopolistic competition would
A tariff is a tax on imports. Use our model of the excise tax to explain why domestic firms ask their government to " protect" them with a tariff. Consider the winners and losers from the tariff. Why do economists tend to think that tariffs are a bad..
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