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Per capita real GDP is given by the equation y = Y/PN, where Y is nominal GDP, P is the GDP deflator, and N is population. In the United States, if the average growth rate of nominal GDP is 2.8 percent, inflation is 1.6 percent, and population growth is 0.5 percent, what is the growth of real GDP? Per capita nominal GDP? Per capita real GDP?
Define business inventories and explain how they are counted in GDP. Calculate government spending given the following information:
quotas and tariffs graphing and analysisthe following problems ask you to draw graphs illustrating trade barriers for
Utilizing Edgeworth box diagrams for a society of two people, explain why societies that promote market exchange are likely to be more efficient. Are they also likely to be more equitable.
In the circular flow diagram businesses pay wages, rent, interest, and profits to households in return for the use of factors of production. through the factor market businesses purchase goods and services from households in return for consumption..
One page summary on Chapter 9 Derivatives: Futures, Options, and Swap
A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming it wants to raise revenue.
How will high entry barriers into a market influence (a) the long-run profitability of the firms (b) the cost efficiency of the firms in the industry (c) the likelihood that some inefficient high-cost firms will survive
Suppose government were to provide free daycare for children and assume this has no effect on the real wage w, taxes T, and dividend income π. Determine effect of the daycare program on consumption, leisure and hours worked by the consumer.
By how much would a proposed merger between the two smallest touch screen makers increase the Herfindahl index? Would the government be likely to challenge that proposed merger?
Suppose a firm with the usual U-shaped cost curves is producing a level of output such that its short-run costs are as follows: ATC = $0.37 per unit, AVC = $0.32 per unit, AFC = $0.05 per unit, MC = $0.43 per unit. Given these short-run costs, as ..
A leather shop makes custom-designed hand tooled briefcases and luggage. The shop Make $400 profit from each briefcase and $200 profit for each luggage. The shop has a contract to provide up to a total of 30 products to a store per month.
Questions on Long-Run Labor Demand and Factor Substitutability, Own-price elasticity, Cross-price elasticity
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