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The inflation-free rate (real rate) is 2.3% per year and the inflation rate is 2.03% per year. The effective interest rate (market rate) is therefore
Suppose an industry facing an inverse demand equation equal to P = 120-4Q faces a new pollution control law that shifts its constant marginal cost of production from C1 = 50 to C2 = 68. Compute the social costs of regulation in this industry.
A county is considering using a piece of park land for one of two alternative recreation projects.
A laboratory centrifuge costs $80,660 and has a $5530 salvage value with an 8-year recovery period. The estimated annual operating cost is $7000 per year. Use the double declining balance method with switch over to straight line to determinate the bo..
Show that the consumer is better off with a lump-sum tax rather than a proportional tax on wage income given that either tax yields the same revenue for the government. You must use a diagram to show this. (Hint: the consumption bundle the consumer c..
Illustrate what new decision will you make regarding production levels and pricing for your Widget facility.
q1. on a 100-acre farm a farmer is able to manufacture 3000 bushels of wheat when he hires two employees. also he is
Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.
Create a scenario around this business in which a manager would decide to either stop operations in the short-run or going out of business in the long-run.
Draw a graph with arcade games on the horizontal axis also newspapers on the vertical axis. Joe has $10 every week to allocate between these commodities.
In the year of the shock, compute the value of GDP, price level, interest rates, and real money supply. Hint: Derive IS and LM equations to find GDP and interest rates. Calculate the new long-run equilibrium values for income, prices, interest rates,..
The quantity demanded of the resource in each year is given by the equation Qt = 10 - Pt . The marginal cost of extraction is zero.
Illustrate how each of the following events would shift the AS schedule and potential RGDP, thereby altering equilibrium prices and output levels in the economy. Use an aggregate supply-aggregate demand diagram in your explanation and assume that the..
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