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1. What are the four phases of the business cycle?
2. Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer non-durables?
Consider a firm for which production depends on two normal inputs, labor and capital, that are not perfect complements. Initially the firm faces market prices of w = 10 and r = 8, for labor and capital. These prices then shift to
Would it be advantageous to borrow money if you expected prices to rise? Why, or why not?
To counteract an economic contraction, the Federal Reserve (the Fed) often attempts to stimulate the economy by reducing interest rates. Describe the five-step process that starts with an increase in the money supply and ends with an increase in GDP...
Explain why the November 1996 Deutsche Telekom issue was a landmark global financial markets event. Discuss: General reasons for privatization and DT’s reasons for it; why DT had to expand the offer outside Germany; why the issue was successful from ..
Explain how a bandwagon effect might speed up the rate at which DVD players are adopted by consumers. Do likewise for the case of cable television subscriptions.
According to comparative advantage, in which industries would you recommend the country to specialize. Has the country specialized in your suggested industries.
Bank reserves are: currency and customer checking deposits. currency, customer checking and savings deposits. any asset used to purchase goods and services. cash and similar assets held to meet depositor withdrawals or payments.
When a firm tries to maximize profit by segmenting the market into two groups and charging each group a different price, which group should be facing a lower price? Bundling is more profitable than traditional pricing ...
How to create class named Delivery_Details that will contain get and set methods for the town, weight, price and delivery company.
Plotting the supply of labor In Denver, 140 people are willing to work an hour as hostesses if the wage is $10 per hour. For each additional $5 that the wage rises above $10, an additional 35 people are willing to work an hour. What is one explanatio..
Suppose that the nominal rate is 26%, and real interest rate is 5%. What is the inflation rate?
Efficiency-wage theory suggests that to improve workers performance, firms should:
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