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Consider an economy described by the following equations:
= + +
= 100 + 0.75( - ) = 500 - 50
= 125
= 100
Where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the interest rate. If the economy were at full employment (that is, at its natural rate), GDP would be 2,000.
At the same time, as the government purchases the new military equipment, people expect the inflation rate to increase to 5%. The new equilibrium nominal interest rate will then be percent.
A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course the owners have asked for your opin..
What factors led to the mortgage default crisis How did mortgage defaults affect banks involved in mortgage lending and mortgage investing Securitization TARP What do these mean How did mortgage-backed securities spread losses during the mortgage ..
Watch the video of a recent debate between John Mackey, CEO of Whole Foods and John Roemer a Marxist economics professor from Yale. (Marx was the father of communism) It is an hour long. After watching the debate, explain each man's major points..
your hospital is considering opening a satellite urgent care center about five miles from your main campus. you have
What is themaximum that the government would be willing to pay for the patent? (Hint: the government would liketo maximise total surplus of producers and consumers in the market, but is not willing to pay more thanthe total surplus generated by th..
Explain economic arguments supporting your position. You are to submit a paper copy of your Position Statements on the dates they are due.
Does LRMC =MR for Competition? Does LRMC =MR for Monop. Competition? Does LRMC =MR for Oligopoly? Does LRMC =MR for Monopoly? Does P=AC for Competition?
It is often useful to spend 15 minutes planning your essay and writing down an outline before you start writing. You should expect to spend a total of 2 hours on each essay. Please check your final essays for typos and awkward phrasing.
If the euro weakens relative to the yen by 10% during 2011, what would be the magnitude of the real depreciation of the euro relative to the yen?
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
Suppose the externality/public good aspects of weather forecasts and argue for or against such a "privatization" of weather forecasting.
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