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Drawing Inferences Under what economic conditions does swapping goods for other goods, or bartering, make sense? What other events or economic conditions, aside from the one shown in the video, might make bartering an economic necessity?
The economy is hit with a positive LRAS shock and you, in your role as a central banker, respond with an active policy response to stabilize inflation. (a) Draw an AS/AD diagram illustrating the changes in output and inflation. (b) Describe briefly h..
The car industry is characterised by heavy research and development activity. This activity has a high fixed cost and can only be undertaken by large firms with
The price elasticity of demand for cigarettes is estimated to by 0.5. A pack currently costs $10. If you want to reduce smoking by 20%, how much tax should you
Distinguish between a neoclassical and a Keynesian economists.
Tim's utility function is U(X,Y)=(X+2)(Y+1). Write an equation for Tim's indifference curve that goes through the point(X,Y)=(2,8). Suppose that the price of each good is one and that Tim has an income of 11. Write an equation that describes his budg..
1. What are the growth promoting policies prescribed by neoclassical models? 2. What are the growth promoting policies prescribed by new growth models? Give me the good explanation.
Consider a market demand curve that can be expressed as P = 4,500 - 20Q. There is one dominant firm, BostonSci Co., in the market characterized by a total cost function C = 300Q.dominant so MC = AC = 300. For simplicity, assume there are no fixed cos..
The Green City Hospital treated 100 patients in May with 20 nursing hour inputs, and it treated 120 patients in June with 22 nursing hour inputs. What is the total product for each month? What is the marginal product?
What are instances of economic failure that have contributed to this cost escalation? What should we do about them?
Using the concept of economies of scale to explain the two companies' argument that it is now necessary for CSR and Boral to merge.
Take the first, second, and cross derivative of F(K,N). Explain what the sign of each one means. Divide the function by N and show that the function can be written as F(K,N) = (KN)↵. Letting k = KN, express F(K,N) as a function of just k and let that..
In the simple linear regression model yi = βˆ 1 + βˆ 2xi + ˆei , where E(ˆei) 6= 0. Show that the model can always be written with the same slope, but a new intercept and error term that does not violate the property that E( ˆei) = 0.
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