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Suppose that the full employment level of nominal GDP rises in one year from $16.8 to $18.0 trillion. The long run equilibrium price level, however, remains unchanged at 120. By how much (in real dollars) has the long run aggregate supply curve shifted to the right from one year to the next? Round your answer to two decimal places.
Show how each of the following would affect the U.S. balance of payments. For each case be explicit about which part of the Balance of Payments is affected (CA, KA, or FA) and by how much. For each transaction indicate in which of the 6 types (import..
Job B looks more attractive by using simple arithmetic in a static world; but since these will occur in different periods, we know that the best way to evaluate each one is by getting the net present value of each job using each individual's discount..
Suppose that omar's marginal utility for cups of coffee is constant at 1.5 utils per cup no matter how many he drinks. On the otherhand, his marginal utility per doughnut is 10 for the first doughnut he eats, 8 for the third he eats, and so on. In ad..
A maker of special handling devices for beverage manufacturing purchased an airplane for use by the company's executives. The airplane cost $1,500,000 and has an estimated 7-year life. What is the total amount depreciated (to closest dollar) through ..
what is the short run equilibrium level of output in this economy.
Use the aggregate expenditure model developed in this chapter to explain the following statements: Coming amid continued turmoil in the financial and credit markets, the report sent stocks lower, with the Dow Jones Industrial Average falling 146.70 p..
Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X+2Y UB(X,Y) = X*Y The initial endowments are: A: X = 2; Y = 8 B: X = 2; Y = 8 a) Using an Edgeworth Box, graph the initial allocation and draw t..
q.imagine that e-markets is a company that implements a competitive market in mp3 players. based on information which
Importance of production
Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. ..
An incumbent and entrant face a market of 100 buyers. Each buyer has a RP of $100 for the incumbents as well as entrants product. At each round each buyer is interested in buying no more than one unit of the product. In the ?rst round, the incumbent ..
Question 2.2. Before Keynes, most economists and politicians believed in a cyclically balanced budget.
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