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Q. Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, what was the real interest rate you paid
Q. a country can produce 400,000 machines parts per week and produce 600,000 board feet of lumber. If the country ccould also produce 300,000 machines and 750,000 board feet of lumber per week then the average opportunity cost of 1 board foot of lumber would be what
Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.
Illustrate what ranges of the money growth rate (assuming positive values) would allow the Bank of Korea to achieve this objective.
State two economic principles of taxation and which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads.
increases the equilibrium GDP also the size of that increase varies directly with the size of the MPC
Assume that the Keynesian short-run aggregate supply curve is applicable. Elucidate the two factors that can cause the nation's real GDP to increase in the long run.
Assume a consumer who buys cola and ice cream for snacks. Assume that the price of ice cream increases. Which of the following is an example of the substitution effect.
Between two production technologies firm can choose a new product line. If it installs expertise 1, it's annually costs.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
The owners decide to begin spending immediately a rather large sum on advertising designed to decrease elasticity.
Then make an argument for why the government may still prefer using the other approach.
Illustrate what happens to output, the price level, and the expected price level in both the short run and the long run.
Westinghouse and General Electric are competing on the newest version of clothes washer and dryer combinations.
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