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1. (a) Suppose the real GDP was $13.1 trillion in 2013 and $13.1 in 2014, what is the growth rate?
(b) How many years would it take for GDP (gross domestic product) to double using your answer from (a.)?
2. What are the sources of human capital? Discuss some specific examples.
3. What is the law of diminishing returns? Give an example of what law of diminishing returns implies.
4. What happens when the government raises taxes and uses revenue to engage in spending?
fri 23rd of march 2012 2000 words 25 marks competition in the australian market for groceries the retail grocery sector
Suppose venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import?
Suppose that the interest rates in the U.S. and Germany are equal to 5%, that the forward (one year) value of the € is F$/€ = 1$/€ and that the spot exchange rate is E$/€ = 0.75$/€. Please answer the following questions by explaining all steps of ..
The traditional Keynesian model, explain how contractionary monetary policy would affect equilibrium aggregate output and the price level.
Draw the relavant isoquant map and isocost line if the cost of labor is $4 per work-hour and the cost of glass is $4 per pound and 90 light bulds are to be produced. What is the cost minimizing combination of glass and labor.
In Westlandia, the public holds 50% of M1 in the form of currency, and the required reserve ratio is 20%. Estimate how much the money supply will increase in response to a new cash deposit of $500 by completing the accompanying table
Explain demand for cassette players is price elastic also they are cyclical normal goods.
Under the terms of the swap, 6-month LIBOR is exchanged for 12% per annum (compounded semiannually). The average of the bid-offer rate being exchanged for 6-month LIBOR in swaps of all maturities is currently 10% per annum with continuous compounding
Bank A offers to lend $10,00 at a nominal rate of 7 percent, compounded monthly. The loan must be repaid at the end of the year.
The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce most effectively and efficiently, is known as.
What is the simple deposit multiplier, what is the amount of required reserves that the bank is holding and how much excess reserves does the bank have?
Assume an individual purchases 500 units of good and spends 10,000 dollars.
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