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Stock market crashes are often followed by economic downturns. How does a stock market crash has the potential to lead to a recession in an economy?
Consider the utility function U(X,Y)=30X^.8 Y^.2. Explain why these points are unique on this indifference curve. Please use at least 3 properties of indifference curves and any of the assumptions regarding utility to justify your response. Your resp..
Consider a small nation producing both computers (y-axis) and coffee (x-axis) and facing increasing opportunity costs. Starting from a free trade equilibrium where this nation exports coffee and imports computers, can this nation experience “immiseri..
What is the differential inflation rate in Felix's salary?
In the long run, some firms will respond by, The new equilibrium price and quanity suggest that the shape of the long-run supply curve in this industry is (horizontal, vertical, upward sloping, downward sloping)
Question: The little-known western/central European nation of Hungadunga is ruled by three men: Hungadunga the Unready, Hungadunga the Unsteady, and Hungadunga the Younger.
Briefly explain the disparities we observed in level of economic development in the world today. According to easterlin, why is substantial formal education system necessary for sustain economic growth? what are some of the characteristics of that ed..
The cost of ordering is $80.00 per order and the carrying cost per bundle is $3.50. What are LAMA Creations' ordering costs?
If average income increases from US$5,000 to US$5,500 and if technological advances reduce cost of catching fish from US$2,500 per ton to US$2,000 per ton, by ExplainING how much will annual catch exceed maximum sustainable fish catch.
Analyze the economic and sociological forces that drove the market equilibrium to unsustainable heights and the shocks that brought the markets back down. What might be done to moderate the effects of these economic swings?
A) What is Avicorp's pre-tax cost of debt? Note: Compute the EAR B) If Avicorp faces a 40% tax rate, what is its after-tax cost of debt?
Suppose that there is an exogenous unexpected decline in consumption spending by households. Use the IS-LM, AD-AS model to derive the short-run and long-run effects on i, P, and Y.
Suppose that demand for good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?
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