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Q1. Suppose that I make $15 per hour and you make $20 per hour and we both like to eat hamburgers that cost $5 each. Compare my real wage (in terms of hamburgers) to your real wage.
Q2. Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40, while his marginal-utility-to-price ratio for Superman action. Explain why Michael is not maximizing his utility and how can he change his behavior to increase his utility?
find the new equilibrium GDP when I increases to 350 and all other values remain the same.
explain how the short-run phillips curve the long-run phillips curve the short-run aggregate supply curve the long-run
Which of the government policies below is not likely to encourage per capita economic growth.
Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisi..
disposable personal income decreases by $50 billion and trade deficit is reduced by $15 billion. By how much has national income (Y) change.
explain how would this change affects the optimal investment rule for the firm.
What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail
Illustrate what about Italian labor-force participation rate and unemployment rate.
Consider the following multiplicative demand function where QD = quantity demanded, P = selling price, and Y = disposable income:
How much have global trade and global production (gross national income) grown since World War II? What parts of the world economy have grown fastest in the last 20 years? (Be able to name some countries)
Find out the equation for the firm's labor demand curve. Find the optimal level of labor for the firm to demand.
What happens to each of these values if the central bank changes the reserve requirement ratio to 3%.
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