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Suppose output is initially equal to potential GDP. Now assume the government cuts taxes (and assume government expenditures remain unchanged). How does this affect the ADI curve? What happens in the short run to equilibrium output? To unemployment? Over time, will inflation tend to rise or to fall? Explain how the adjustment of inflation works to return the output gap to zero. What happens to the real interest rate?
Mr. Wayne, CFO, provides you with the following information based on experience and management policy. All sales are credit sales and are billed the last day of the month of sale. Customers paying within 10 days of the billing date may take a 2 pe..
Suppose that instead of 1,200 workers, Home has 2,400. Find the equilibrium relative price. What can you say about the efficiency of world production and the division of the gains from trade between Home and Foreign in this case?
At present, the company can earn a maximum annual profit of $25,000 when it sells 10,000 copies within a year's time. The firm incurs a 50-cent expense each time a consumer downloads a copy, but the company must spend $100,000 per year.
Research the direction of monetary policy over the last 3-5 years. Has the money supply increased or decreased? Explain. Have interest rates increased or decreased? Explain.
Submit as a Word document only; we will use track changes to provide feedback and grade your submission.Do not submit a PDF.
Describe the relationship that currently exists between the U.S. and Cuba.
What single amount on april 1 2012 is equivalent to a series of equal, semiannual cash flows of $1000 that starts with a cash flow on january 1, 2010 and ends with a cash flow on January 1, 2019
the purchaser of the metal pipe will only accept deliveries of pipe where the diameters fall in the range of 1" +/- 0.0030". Using Chebyshev's Theorem, what is the minimum percentage of acceptable metal pipe in a given shipment. (K must be in "st..
Suppose that this year's money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5trillion. What is the price level and the velocity of money.
observational cross-sectional data set that would allow you to answer this question (note that this will probably be a primary data set, that you are responsible for collecting)
Its total cost of production is given by TC = 800 + 18 Q + 2 Q2, and thus its marginal cost is MC = 18 + 4 Q. The market price is currently P = $54. In the short run, what is the volume of output that maximizes Commodity Inc.'s profits.
A printer's wage rate is $20, and the price of a printing press is $5,000. The last printer added 20 books to total output, while the last press added 1,000 books to total output. Is the publishing house making the optimal input choice.
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