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Suppose worker productivity increased at the rate of 1.9% per year. If the Labor force grew by 1.5% per year, what rate of increase in RGDP would be sustainable without increasing inflation pressure?
Converse why an organization in an uncertain environment requires more horizontal relationships than one in a certain environment
Indicate whether each of the following statements describes an increase in demand, decrease in demand, change in quantity demanded, increase in supply, decrease in supply, or change in quantity supplied in the given market.
Explain why velocity of money systematically tends to increase in periods of robust economic expansion. What is the effect on velocity of money if the following occurs? Banks begin to pay high interest rate on deposits. Great uncertainty is created a..
Explain how it is possible for an economy in the recovery phase of the business cycyle to have a lower GDP and higher unemployment rate than when it was in the recession phase of the business cycle.
Distinguish between the resources market and the product market in the circular flow model.
Rent control is an example of a price ceiling. Which of the following problems must be addressed under a rent control program?
The price of a 10-year bond can decline by approximately 9% if interest rates rise by 1% point. To illustrate this, suppose you own a 10-year U.S. Treasury bond that has a bond rate of 2% per year. How much money will you lose if the value of the bon..
In June 2007 a U.S. toy company was forced to recall 1.5 million “Thomas the Tank Engine” toys because they contained lead paint. The toys had been made in China. You would expect these recalls to "decrease" or "increase" the demand curve for Chinese..
A restaurant owner has the following short-run production function: Draw a table showing total, marginal and average product up to an input of ten workers, and plot these on a graph. Show the range of labour where stages I, II and III of production o..
Evaluate how sale of novels would change during a period of rising incomes. Assess probable impact if competing publishers raise their costs.
A competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows: MC 0.5Q where Q represents units of output per unit of time. Determine the market short-run supply curve. Calculate the price that wo..
In the Solow growth model, human capital will increase if (choose the best answer):
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