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What is the intuition behind the Aggregate Demand (AD curve) being downward sloping in Macroeconomics?
A firm operating in circumstances of perfect competition faces a market price of $10. It is producing 2,000 units of output daily at a total cost of $19,000.
Consider an economy that begins with real GDP equal to potential. There is then a sudden increase in the price of raw materials.
What was the absolute amount of increase in real income? - Make your calculations of the percentage change in real income and the absolute change in real income using the approximation formula and using the more precise method with index numbers.
Discussion Board Debate: "Should the Federal Reserve aim at a zero inflation policy?" Explanation: Virtually all economists agree that high inflation rates are disruptive. Economies experiencing double-digit inflation rates tend to have lower growth ..
In July 2007, Scholastic Publishing released Harry Potter and the Deathly Hallows at a suggested retail price of $34.99 and was rumored to be selling the book to retailers at a wholesale price of $18.99. Costco and Walmart offered the book for $18.18..
calculate the percentage change from 2001 to 2002 in nominal GDP, real GDP, and the price level. What is the value of the GDP deflator in 2002?
A young graduate engineer wants to know the equivalent future worth if she invests a uniform series amount of $5, 500 each year for the next 35 years in an individual retirement account (IRA). Assuming a 796 per year rate of return, she wants to calc..
The owner of a new health spa estimates the avg customer's monthly demand for visiting the spa as Q-50-.25P. The cost of operating is C(Q)=3Q, where Q is the # of visits. The owner has been charging a $20/month membership fee and a $5 per-visit fee. ..
Suppose the government intends the tax to reduce the consumption of some goods for example, cigarette or chewing gum. Illustrate what will determine the effectiveness of the tax in reducing consumption
What is the central theme (s) behind Viet Nam economy’s successes and challenges in providing an improving welfare for its citizens?
In your opinion, have these measures been effective or ineffective in addressing the major concern or concerns of the business cycle?
You are in a meeting about the price strategy to adopt for a product your firm is about to introduce into a new market. Jack says, “We should use price skimming.” Jane says, “We should use penetration pricing.” What assumption is Jane making about th..
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