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The political business cycle refers to
a) the fact that about every four years some politician advocates greater government control of the Fed.
b) the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
c) the part of the business cycle caused by the reluctance of politicians to smooth the business cycle.
d) changes in output created by the monetary rule the Fed must follow.
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 pressures?
Illustrate what is the WTO. Briefly describe one trade topic identified by the WTO on the website. And, what did you learn from the Web site about the WTO.
Suppose a monopolist faces the following demand curve: p=420-4q Marginal cost of production is constant and is $36, and there are no fixed costs. What is the profit maximizing level of output? What profit maximizing price will be charged? How much pr..
If price elasticity equals one in absolute terms, it means:
The government begins providing health care subsidies for all Americans.b. Private investors become less optimistic about the economy.c. All overseas conflicts are ended and American troops return home.
The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
Given all the above factors, which candidate should be selected? (b) By how much would the estimated capital investment for the alternate candidate [the candidate not selected above in (a)] have to vary from your first decision in (a)?
Graphically reflect the impact of changes in the non-income determinants of consumption spending on the consumption function.
Which of the following market conditions in an oligopoly increase the probability that it will be able to maintain prices well above the competitive market level? Explain your answer briefly in each case.
none of the employees makes the effort to do so. How would you change the organizational architecture of the firm to raise profitability?
Suppose firm 1 and firm 2 each produce the same product and face a market demand curve described by Q= 5000 - 200P. Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10. what is the Ber..
Advantages and disadvantages of a company using price discrimination in order to increase demand for its product or service.
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