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If the central bank does not intervene in the foreign exchange markets (the RA balance is zero), briefly explain why CA + KA = FA.
Evaluate the effect of each of these four changes on demand based on the estimates provided and what is the net effect of all the changes taken together
Studies indicate that the price elasticity of demand for beer is about 0.9. A government policy aimed at reducing beer consumption changed the price of a case of beer from $10 to $20. According to the midpoint method, the government policy should hav..
Compute the numerical elasticity of long-run demand. Is it unitary, elastic, inelastic, etc. Explain why would consumers demand 0 minutes in the long run if the price was $.30 per minute.
In 2012, WVU president James Clements’ base salary was $775,000. The head football coach, Dana Holgorsen’s base salary was approximately $2.4 million. Why is the football coach paid so much more than the president? Should the head football coach be p..
The Fed can reduce the money supply by,
Boris budgets $40 week for his morning coffee with milk. He likes it only if it is prepared with 3 parts coffee, 2 part milk U= min {3/2M,C}. Coffee costs $2/oz, milk $1/ oz. Graph the two budget constraints and the two optimal bundles with coffee on..
if the price is greater than the average variable cost and less than the average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm.
The annual inflation rate is the yearly percent change in the ....
Illustrate what are major arguments in case for income equality. Illustrate what are major arguments in case for income inequality.
Elucidate the opportunity costs for the manager of being in this business relative to returning to his old job. what is the economic profit of the business.
In the short run, when there is an increase in aggregate demand:
Problem 1: Assume that the long run total cost function for each firm in a perfectly competitive industry is LRTC = q3 - 4q2 + 8q and the market demand function is Q = 2000 - 100p. Calculate:
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