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Distinguish between the substitution and income effects of a price change. If a good's price increases, does each effect have a positive or a negative impact on the quantity demanded?
You are taking a course in chemistry this semester and the course has three exams that will determine your grade. The first exam counts as 20% of your grade, the second exam counts as 30% of your grade, and the third exam counts as 50% of your gra..
Illustrate what is the short-run equilibrium real GDP and price level. Does Japan have an inflationary gap or a recessionary gap and what is its magnitude.
Why do the economists use real GDP rather than nominal GDP to gauge economic well-being and discuss critically GDP as a measure of economic welfare and how each of the following events is likely to affect GDP?
Has a deadweight loss been created? Why? Does the price ceiling cause economic inefficiency?
Can you then devise a simple supply-demand picture of equilibrium in the world capital market in which quantities (saved or invested) are on the horizontal axis and the real interest rate is on the vertical axis?
If a local movie theater sells tickets at different prices (senior citizens versus young people, matinee versus evening prices) is the local movie theater a monopoly What about the concession stand inside the theater
Derive an expression for the comparative static result dY/d (the effect of the change in the anticipated inflation rate on the equilibrium output), and show what its sign is. Briefly explain the intuition for its sign.
Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than using accounting expense data. What is the difference between opportunity cost and accounting costs?
You are an Economist advising the Federal Government about the Australian Labour Market and issues relating to unemployment. The issues that you have been asked to report are: if the labour market is working properly why does Australia experience si..
Compute the coefficient of price-elasticity of supply for the seven prices ranges given above and complete the table.
"In the Solow model, an economy that starts with a higher stock of capital per capita will reach a higher steady state level of capital per capita"
Like supermarkets, full-service department stores like Macy's are generally in decline. What factors might these types of stores have in common behind their declines How would you determine which were important and which were not
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