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On an AD/AS graph, draw the impacts of a decrease in defense spending and an increase in the corporate tax rate. What happens to real GDP and the price level?
Consider the problem of the apple farmer. In your own words, explain the farmer’s optimal solution in the free market using marginal cost analysis. How might this solution be suboptimal from society’s perspective? Explain who benefits and is harmed u..
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer-run strategies versus current operations.
q. 1. an investor buys a property for 1 million with 40 of the purchase price attributable to the land and the balance
African Americans, then examine through the use of historical evidence whether these factors can elucidate civil rights progress during the "Two Reconstructions".
Explain how each of the following actions will affect the level of planned investment spending and unplanned inventory investment. Assume the economy is initially in income–expenditure equilibrium. There is a reduce in the expected growth rate of rea..
What is the probability that all of the students have the same birthday?
In his discussion of post-WWII growth in France, Blanchard describes the effects of destruction of part of a nation's capital stock. Suppose that instead of a decline in the capital stock a country experiences a decline in N resulting from a plague t..
An industry consists of three firms. All three have identical variable costs VC(q) = 5q + q2, but whereas Firms 2 and 3 have fixed costs of $2,000, Firm 1’s fixed costs are $3,000. Market demand is Q = 335 – p and the firms play Cournot. What is the ..
Testifying at a price fixing trial involving Cargill Corp. and the market for chicken growth hormone, (in which the Cargill is one of only three firms worldwide), an executive for Perdue said: "It's an oligopoly. When one (firm) changes price, they a..
Liam dreams of starting his own business to import consumer electronic products to his home country. He estimates he can earn 5% on his investments
Explain why the balanced budget multiplier is equal to one (i.e., if government spending increases by 10 billion and taxes increase by 10 billion, equilibrium GDP increases by 10 billion). What would provide more stimuli, a 10 billion dollar increase..
[Some Hints: You need to discuss the benefits (gains) and costs of 'trade liberalization (trade openness)' and 'trade barriers (trade autarky)'.
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