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1. What do you understand by the terms macroeconomics and microeconomics?
2. What are the main subjects covered in the study of the macro economy?
3. Outline the main sectors of the macro economy. In what ways would you expect changes in exchange rate policy and international trade policy to affect the macro economy?
aisha and robin consume only food and clothing. figure 1 below depicts the consumption possibilities for these two
Now suppose each jar of applesauce sells for $5. Fill in the marginal revenue product of labor for each level of production.
Find the times and locations at which the velocity is zero.
Assume your money could earn 5.0% per year in low risk securities in the 7 year period in question. Using that same amount, what amount, invested each year for the next 4 years would be sufficient to cover the future costs at the end of years 5 th..
Consider an open economy with flexible exchange rates. Suppose output is at the natural level, but there is a trade deficit. What is the appropriate fiscal and monetary policy mix?
By engaging in the business, the students realized that they would have to give up their summer jobs. Each student made an average of $4,000 per summer. However, they believed they could keep expenses down by doing much of the research for the boo..
Suppose a farmer has some money of his own to invest in a better way to cultivate his land. Cultivation can be done using two techniques, both of which require an initial start-up capital of $200. The first technique is risk free and generates a..
a safe firm and a risky firm. Each firm needs to borrow the same amount of funds to start a project. The safe firm knows with certainty that it will see a 30 percent return on the project (i.e., for each $100 borrowed, the safe firm will see rev..
Suppose Springfield's economy moves into a recession and Y falls to $9 and rising unemployment allows widget makers to reduce wages to $18 per hour. What happens to the supply and demand curves.
If w is the cost of a unit of labor and r is the cost of a unit of capital, derive the firm's long-run total cost curve and average cost curve in terms of the input prices and Q.
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the official unemploymen..
What is investment? Why does investment decrease when the real interest rate increases? What role do expectations play in investment?
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