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During a recession, most firms experience a reduction in the demand for their products and service. In other words, their demand curve shifts to the left. In order to stay viable they often lay off their employees. How does it affect labor productivity during recessions?
Consider a country that is operating with a fixed exchange rate under conditions of perfect mobility. Explain what effects you would expect an in increase in world interest rates to have on the equilibrium values of the following domestic macroeconom..
1. Note that the current and capital accounts in the U.S. Balance of payments (BOP) are mostly private transactions while the official settlements balance involves transactions between governments
Two restaurants are on the same block. One has been opened for 10 years and its a thriving business. The other one has been open for only a year. They both want to expand. When the two owners told the local bank looking for a loan, which one is likel..
Throughout the ages countries have implemented impediments to trade.
Illustrate what can you conclude about the structure of the industry in which this firm is operating.
A firm emits 30 tons of a pollutant, before the government begins to regulate it. The firm’s marginal abatement cost curve is given by: MAC = 10*A (A = “tons of abatement”) What is the firm’s total abatement cost? What is the firm’s total compliance ..
A market has a demand curve described by P=30-Q, a supply curve described by P=16+Q, and a price ceiling of 20. Calculate the Total Surplus of the market with the price ceiling
For months, Sammy has allowed his garbage to accumulate in his backyard, next to a school playground. Little Maria at age five, sees what to her promises to be a nice toy among the trash and runs into Sammy’s backyard during recess. Indicate the part..
A consumer wants to minimize her expenditures, E= PxX + PyY, subject to maintaining a given level of utility, \bar{U} = xy. form the Lagrangian for this problem, derive the first-order conditions for an expenditure minimum, and solve those conditions..
Suppose Bob owns a pizza place in a competitive market. If an additional worker will cost Bob $200 and offers marginal productivity of 40 pizzas, what is the marginal cost of producing a pizza? Show your work and explain your reasoning.
What was the issue in Edgewood v. Kirby? What was the judge’s decision? Why were 1 million out of the state’s 3 million school children receiving inadequate instruction? What does democracy require regarding education in Texas?
Elucidate using a graph why the change in real GDP is likely to be smaller than the shift in the aggregate demand curve.
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