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Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on the size of the federal deficit?
Use the firm's isoquant-isocost diagram and the firm's marginal cost curve to explain and illustrate the output and substitution effects of a decrease in the price of labor.
Elucidate why this information does not allow you to establish limits on the terms of trade between these two countries.
Suppose that there are 1,000 hot-pretzel stands operating in Toronto.Each stand has the usual U-shaped average total cost curve.
Many home improvement retailers like Home Depot and lowes have low-price guarantee polices. Do these types of pricing strategies result in cutthroat competition and zero economic profits?
The opening statement on the Web site of the Organization of Petroleum Exporting Countries says, "OPEC's eleven members are all developing countries whose economies are heavily reliant on oil export revenues. THey therefore seek stable oil prices ..
Suppose Congress passes and the President signs a bill raising the federal minimum wage by $1.00 per hour from $7.25 to $8.25. As a result of this increase, a local retailer reduces its hiring of minimum wage employees by 10%.
Company A successfully launches a hostile takeover of company B, in which company A purchases all the assets of company B.
Use the classical model and the quantity theory of money to predict how each of the following shocks would affect the real wage rate (W/P), the real interest rate (r), real aggregate income (Y), and the price of goods and services (P) in a closed ..
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
Illustrate what is the expected interest rate that will be charged by a bank that cannot exactly distinguish.
Explain the decision by price takers to continue to operate, temporarily shut down, or go out of business, when faced with price below average total cost.
You are looking to install a new solar energy system for your house (for heating, air conditioning, and hot water). The cost of the system is $14,000 and the annual savings in electricity for this system today is $2500. This system has a lifespan ..
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