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Except for the CPI index numbers, assume these figures represent billions of U.S. dollars.
Year CPI NGDIP RGDP
1997 $160.50 $7,110.00 ?
1998 $163.00 ? $4,896.47
Calculate the following:
a) The value of real GDP in 1997?
b) The value of nominal GDP in 1998?
c) The rate of inflation between 1997 and 1998?
Consider the following Solow model of growth. Both population and work force grow at the rate of n=1% per year in a closed economy.
Which of the following industries is most likely closest to achieving perfect price discrimination? Which of the following is an example of a natural monopoly?
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Suppose you are running a photo copy center that makes illegal copies of the textbook. An illegal copy of the book sells for $10 and you only have one copy machine.
the government needs to reduce smoking by 20%, by how much should it increase the price.
The secretary of state has asked you to prepare a memo describing the key policies and economic arrangements that a specific less developed country should follow in order to achieve rapid growth and higher income levels.
Joe owes Willy $5,000 from an old gambling debt. Joe knows that there is no way he can repay the debt in the near future. He asks Joe if he will take a $25,000 life insurance policy that has a cash surrender value
Suppose as well, that all voters favoring liberal candidates will vote, while only 50% of those favoring conservative candidates will vote. Create a graph to show how the political equilibrium will differ from an election in which all citizens vot..
Suppose the Fed decided to purchase $30 billion worth of government securities in the open market. What impact would this action have on the economy?
Illustrate what are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.
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Question based on Derive and compare demand curve, Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?
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