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Sal's gym holds a hot yoga class with space for 20 people. When the price is $4.50, the class fills up completely. Seeing the desire, Sal raises the price to $5.50. But only 10 people come to the next class. What is the price elasticity of demand for the hot yoga class?
a) 0.20
b) 0.50
c) 3.33
d) 2.50
Describe why population growth has such a negative impact on economic growth in Malthusian and Neoclassical growth models.
The Board of Directors of CYZ Corporation votes to issue two shares of stock for each share held as a stock dividend to shareholders. Just prior to the dividend, Cheryl owns 100 shares of CYZ Corporation stock that she purchased for $10 per share. Sh..
If private investors and speculators believe that the $0.12 per dirham exchange rate is not sustainable, and the exchange rate should be higher ($0.15 per dirham), what actions are they likely to take?
There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $10,000 per mile to set up. How much would it cost to fence a single property whose area is one square mile if that property a..
assume initially that the demand and supply for premium coffees one-pound bags are in equilibrium. now assume starbucks
Countries A and B have the same rates of investment, population growth, and depreciation. Country A has a higher rate of growth than does Country B. According to the Solow model, which country has higher investment in human capital?
assume prices are flexible and that factors of production are fully employed in both economies. Assume there is perfect capital mobility for the small open economy.
An economy begins in long-run equilibrium and then a change in government regulations allows banks to start paying interest on checking accounts. Recall that the money stock is the sum of currency and demand deposits, including checking accounts
If capital’s share of income is 25% and labor’s share of income is 75%, the stocks of both capital and labor increase by 50% or there is no technology growth.at what rate will potential output grow.
Identify and discuse the IS-LM framework (determination ofincome and the interest rate) and equivalent AD-AS framework.(determination of price level and income) and how changes inequilibrium occur as a result of changes in fiscal
Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP is 2 percent above potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real federal funds rate?
Hurricane Katrina which hit the Gulf Coast region in August 2005, resulted in massive flooding which destroyed large sections of New Orleans. Suppose prior to this event, New Orleans was producing an output combination given by a point.
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