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Suppose policy makers pass a budget that results in an increase in the budget deficit. Also assume that this fiscal policy action results in a reduction in the saving rate. To what extent will this reduction in the saving rate cause permanent changes in the rate of growth of output per worker? Explain.
Assume the marginal revenue product ( MRP ) for minority workers is given by MRP = 40 − 5N m , where N m is the number of minority workers. The market wage for minorities is $5/hr. Discriminating firms devalue the contributions of minorities at a rat..
Teresa likes to consume chocolate and yogurt. Her utility function is given by U(x,y) = x^0.5y^0.5 where x and y are the quantities of chocolate and yogurt she consumes. Suppose that her income is $10 and the initial prices for both of the goods is $..
How will this fee affect the profit maximizing price and quantity? How will this fee affect the monopolist's profit?
according to the midpoint formula, the value of price elasticity of demand for Pepsi-Cola.
Explain how supreme as well as comparative advantages were used in your simulation.
Explain is any outcome generated by a Nash equilibrium not generated by any subgame perfect equilibrium.
Dewey Cheatham is the new Vice President of Marketing for a large online search engine company, Pottstown Innovative Enterprises (AKA, PIE). Dewey has been doing some research into how he can increase the Company’s revenues and thereby really impress..
Since August, automobile inventories have been rising. Moreover, recent unemployment numbers suggest that European economies will grow more slowly than expected. What direction are auto prices likely to go?
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
A firm produces tables and bookshelves. Each table yields a profit of $9 and the bookshelves yield a profit of $12. Each week the firm has 12 gallons of varnish and 16 lengths of redwood. The table requires 1 gallon of varnish and 1 length of redwood..
Racial also Ethnic Groups defines culture of poverty as a way of life which involves no future planning, no enduring commitment to marriage
If all firms, existing and potential new entrants face decreasing industry costs in the long run under perfect competition, the industry supply curve will:
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