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Q1. The government is considering a policy to reduce air pollution by restricting the use of "dirty" fuels by factories. In making a decision whether to employ the policy, however if all should likely effects of the policy on real GDP be taken into account? Discribe.
Q2. Assume that a borrower as well as a lender agrees on the nominal interest rate to be paid on a loan. After that inflation turns out to be higher than they both expected.
a. Is the real interest rate on this loan higher or lower than expected?
b. Does the lender gain or lose from this unexpectedly high inflation? Explain does borrower gain or lose?
What will the new Lerner Index be after some time with the new demand curve and market price of 30? What firms survive the new demand curve in the industry and why?
Ilustrate what concern would you have about this sale and or lease back contract. Explain how would you price these two events differently.
-analyze the usa financial meltdown that happened in 2008-2009. this crisis was partially caused by the reward systems
If the product price is $105, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations.
Each of the five nations that have been asked to bid for the broadcast rights for the London 2016 Games. Prepare to negotiate prices and other organizational details.
what is the value of the money multiplier given each of the following sets of values for CUR and RES? what would be the equilibrium value of total money stock assuming a monetary base of $10 trillion?
Calculate the percentage change in nominal GDP, real GDP and the GDP deflator in 2009 and 2010 from the preceding year. For each year, identify the variable that does not change. Explain in words why your answer makes sense.
What is the economic profit/loss associated with this order if you proceed? Should you proceed or back out of this transaction?
Decide to conduct a SWOT analysis to evaluate the value and risks. Provide a SWOT analysis and briefly discuss each factor.
What other economic factors are affected when taxes are raised or lowered, and how are they affected? Should the government increase tax rates on everyone as a way to equalize incomes and wealth?
briefly explain the probable effects of the screenwriters’ wage increase on: Equilibrium price, equilibrium quantities, and total revenues in the movie and popcorn markets.
If the prices of gold and other commodities increases how will this influence the value of rand. Explain how will a depreciation of the rand influence our exports and imports.
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