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Draw supply and demand curve to illustrate the following sequences of events. Show changes in one graph. Assume upward sloping for supply curves and downward sloping for demand curves
1. In year 1, the rental apartment market in a certain city is in equilibrium. In year 2, the population of the city grow significantly. In year 3, the population continues to grow and a rent control law is introduced to prevent apartment rentals from rising above the levels reached in year 2.
Now assume income falls to 200 and prices are constant. Draw the new budget constraint on the same axes as a dotted line. Label the new intercepts.
Assume that an economist states that she believes the Federal Reserve should ensure that nominal GDP grows by 5% every year and that is all the Federal Reserve should do. Which of the following is true about this economist?
If market inverse demands in two markets are p1(Q1) = a1 − b1Q1 and p2(Q2) = a2 − b2Q2 and the firm produces according to C(Q1, Q2) = c1Q1 + c2Q2, determine the firm’s optimal quantity, price and profit level.
Offshore production is a trend of assembly of a good in another country and then shipping it back to the US (or the primary sales market). Offshoring became popular in the late 1970s and was an issue in the recent presidential elections. Say you have..
A car dealer offers you a car loan with payments of 4,500, semi-annually, for 4 years. If the posted APR on the loan is 5%, what is the cost of the car?
Assume that home produces contraptions with capital and labor, and two stages of production: parts and assembly. Part production is capital intensive, and assembly is labor intensive. Assume that home produces contraptions in autarky.
Compare the marginal benefits and the marginal costs associated with your purchasing decision. Explain how the strength of the economy as a whole affected the marginal benefits and the marginal costs associated with that decision.
If a large-scale war resulted in massive destruction of physical facilities, but not loss of life
When nominal interest rates become "sufficiently negative" (meaning they exceed cash storage costs) , does money demand behave assymptotically and approach infinity?
What is the role of the financial system? Describe two markets that are part of the financial system in the U.S. economy?
Explain how manager could improve and become more "well rounded". Also include what this manager did well. Include observations about the managerial environment.
Anticipated inflation. Which of the following is reflected in GDP?
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