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1. What is the short-run equilibrium price level and output?
2. Identify the short-run equilibrium price level and output if consumer spending fell?
3. Identify the short-run equilibrium price level and output if investment increased?
4. Identify the short-run equilibrium price level and output after a negative supply shock?
5. If the real GDP was Y, what types of 3 unemployment would exist?
Glassworks and Clearsmooth compete in the local market for windshield repairs. The market size (total available profits) is $10 million per year. Suppose the two windshield-repair firms know they will compete for just one year. Write down the payoff ..
Most industrial farms hire migrant workers, so the market for such workers is reasonably taken to be perfectly competitive. Suppose that all farms individually have a short-run elasticity of labor demand of 0.5. Explain why the reduction in employmen..
If the firm currently has 10 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSLK).
Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. ..
Determine the probability that a randomly selected package will contain between one and three (including both 1 and 3) defective CDs (3 decimal places).
What is your personal cost of capital? How did you calculate it? Is it different for different things?
Describe general and categorical grants. Which type of grant is likely to be most effective at increasing public service expenditure? Explain.
Aggregate demand and aggregate demand curve. The three reasons that explain the downward slope nature of the AD curve. Please list some factors that shift the AD curve to the right or left. Please explain why the SRAS curve is upward sloped and LRAS ..
Define and identify the market for each of the following products in terms of (1) market scope (local, regional, national, international( state your reasons why you classify them as local, regional, national or global in scope),
Illustrate what do you suppose would happen to the price and quantity of peanut butter as incomes fall during an economic recession.
If price elasticity equals one in absolute terms, it means:
An increase in the U.S. demand for the Mexican peso Select one causes an increase in the U.S. dollar price of a Mexican peso. causes the Mexican peso to appreciate. causes the U.S. dollar to depreciate. causes Mexican goods to be relatively more expe..
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