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If the demand schedule may be written P = 100 - 4Q, and the supply schedule P = 40 + 2Q, then what is the market clearing price and quantity?
Explain how changing interest rates will affect investment spending, equilibrium output, and prices. Also, could do a brief discussion of the money multiplier and how it relates to the Fed's activities.
Consider a nation with an economic structure consistent with assumption of classical model. Assume that businesses in this country suddenly anticipate higher future profitability from investments they undertake today.
Illustrate recommendations would you make to Congress and the President for the management of fiscal policy.
The year is 2007, and the price elasticity of driving on Dulles Toll Road is 1.6. The owners of Dulles Toll Road raise the cost of a one way trip to $8.50.
Explain briefly how a change to the following MS, MD, or P would shift LM function to right. Include in your discussion whether the variable would have to increase or decrease to cause the rightward LM shift.
My utility for cookies C and milk M is u(C;M) = C1=3M2=3. Every week I have wealth w = $8 to spend on cookies and milk. Last week, prices were pC = 1; pM = 1; this week there is a big sale on cookies so prices are pC = 1=2; pM = 1.
Differentiate and contrast public goods, private goods, common resources, also natural monopolies with Brazil as well as the United States with bio fuel.
Now assume the government increases spending, reducing the country's savings rate based upon this change. What is the effect on the government spending on the economy.
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is .8 while that of B is 1.5. The T-bill rate is currently 6%, while the expected rate of ..
Manchester Foundry produced 45,000 tons of steel in March at a expenses of $1,150,000. In April, foundry produced 35,000 tons at a cost of $950,000.
Explain the aims of counter cycliceal policy. Show how governments might achieve these aims by using the instruments available to them
Write a 400- to 700-word memo to the economic adviser. Describe the change in tax revenues for the government in the new equilibrium, in both the short and longer terms.
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