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Answer whether the following statements are true or false, explaining your answer in each case.
A. Gross national product at current prices is a measure of real economic activity.
B. The Keynesian model suggests that output is mainly demand-determined.
C. Unplanned inventory changes are the signal to firms that there is disequilibrium.
D. The multiplier in our simple model tells us how much output changes when aggregate demand shifts
The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign.
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
Vulnerability Analysis
Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:
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?
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
What is opportunity cost of producing a car in Canada? What is the opportunity cost of producing the tonne of wheat in Canada? Describe the relationship between the opportunity costs of two goods.
Compute the steady state levels of population. How might we transition between these two steady states and growth during the Malthusian regime?
Suppose the slope of the consumption function is 0.75 and there was an increase in income of $100. Calculate the increase in consumption.
Use the data in the table to the right to answer the following questions. What is the external cost per unit of production? What level is produced if there is no regulation of the externality?
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
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