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A. Suppose that in a year when GDP is rising rapidly you also observe the government budget balance increasing. How can you explain this correlation?
B. Now suppose instead that in a year when GDP is rising rapidly you also observe the Government budget balance decreasing. How can you explain this correlation?
In terms of aggregate supply, a period in which nominal wages and other resource prices are unresponsive to price-level changes is called the A. long run. B. short run. C. very long run. D. immediate market period.
Why do marginal costs first fall and then begin to rise? Why are marginal costs important to a firm when making decisions to increase or decrease production?
A survey of 200 college graduates who have been working for at least 3 years found that 90 owned only mutual funds, 20 owned only stocks, and 70 owned both. What is the probability that an individual owns stock? A mutual fund? What is the probability..
Using the factors that influence the price elasticity of demand, do you think a college education is an elastic or inelastic good? State the factors and then support your answer Often times when a college campus has overcrowded parking, they raise th..
Suppose that you have a business in which you hire five workers, to whom you pay $4 an hour. Suppose further that you have overhead costs of $100 a day and that you pay $1 in materials cost fo each item that your business manufactures. Assuming that ..
The U.S. market for hand sanitizer is controlled by a monopoly (firm I, for incumbent) that has a total cost given by TC(qi) = 0.025qi^2. The market demand for hand sanitizer is given by P = 50 – 0.1Q. What are the incumbent’s profits if it commits t..
What type of performance measurement based process was used to determine Jack Welch’s successor, Jeffrey Immelt, as CEO of GE?
Consider the following annual data on approximate cigarette sales and cigarette producer advertising expenditures over the 1986-1990 period: Discussing the direction of the relationship between the two variables and ii) discussing whether or not the ..
Provide appropriate taxation advice to the client and submit a written summary of the advice given. Would it be necessary to liaise with anyone else? With whom and why?
Depend on this information, which market structure best characterizes the industry in which Forey competes.
(a) Define the inflation rate. (b) Explain how the CPI differs from the PPI, as a measure of the U.S. inflation rate. (c) Why is inflation risk a business management risk? (d) Which would be better, for the U.S. economy, a low stable inflation rate o..
With the aid of diagrams demonstrate that any effectve price controls in a market will reduce the actual quantity bought and sold in that market.
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