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Use the equation for the IS curve to discuss what happens to the IS curve in response to the following shocks. in each case provide a real world example of what might cause the shock.
a) Increase in autonomous consumption (IE C_o increases)
b) A reduction in the interest sensitivity of investment (IE A_1 decreases)
c) An increase in the marginal rate of taxation (IE T increases)
How does virtue theory apply to both the decision maker and the act under consideration by that party? Explain.
It is priced at only $400. Suppose your opportunity cost of funds is 5 percent , which refrigerator should you purchase.
Illustrate what is shop's sales mix Illustrate what is shop's break-even sales volume in dollars. Explain how many bicycles of each type must firm sell to earn a target net income of $50,000.
When a government or corporation sells bonds to raise money, it can do so in one of two ways. It can target a certain amount to raise or it can target a certain amount to pay back at the end of the bond (this is simplified for the purpose of the prob..
In a particular industry, labor supply is ES=20+w and labor demand is E D=60-4w , where E is the employment level and w is the hourly wage. What are the equilibrium wage and employment if the labor market is competitive?
The town finds an investor who purchases the warehouse and promises to renovate the old building and build condominiums. Is this economic growth?
Most large firms have personnel departments responsible for setting specific rates of pay for each job. In performing this function, how much discretion does the personnel department have in terms of the rates it sets? To what extent do outside marke..
An economy has the following Money demand function: (M/P)d= .4Y/i^.5 . Where is the nominal interest rate. Derive an expression for the velocity of money. What does it depend on? Explain why this dependency may occur.
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
Which of the following is viewed as a fundamental building block of the U.S. economic way of thinking?
Reflect on the long term implications of high unemployment among the younger generations in Spain and Greece. In your opinion, does membership in the European Union increase the chance for brain drain?
Give reasons to elucidate what the government would have to do to keep the unemployment rate at 3 percent.
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