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Consider the following country: Y=$ 1,000,000; S= $100,000; K=$10,000,000.
What is the savings gap and how much foreign aid does this country require to achieve a growth rate of 4% according to the Harrod-Domar Model?
Government policy can affect business investment only by changing expenditures. It cannot alter people's expectations about the future. There is no correlation between real and financial transactions.
1. Explain how uncertainty in calculating the true GDP deflator makes it uncertain how much the production of goods and services has increased.
Assume that a monopoly has the following inverse demand curve: P=80-5Q. The firm's total cost function is TC=20+10Q. At what output is the firm's total revenue maximized?
Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9% is too high. They would like to increase real aggregate output (RGDP)...
Suppose the federal funds rate is 4.4 percent and you know that the Fed is following the Taylor rule. You don't know the Fed's inflation target, but the equilibrium real interest rate is 4 percent, the inflation rate is 3 percent, the weight on the G..
The ADEA allows BFOQ to be used as a defense as long as substantially all of the individuals over the age at issue are unable to perform the duties of the job? Federal and private sector employees enjoy the same protections under ADEA?
Discuss the effects of government budget deficit on interest rates, investment, GDP, and net trade.
Suppose you deposit $10,000 in a savings account that earns 8% nominal annual rate for 5 years. The interest will be compounded semi-annually. What are the periodic and the effective annual rates? What is the amount of money in the account at the end..
According to a Wall Street Journal article "MCI, in New Phone War Skirmish, Files Suit over AT&T Ad Claims," MCI was upset with AT&T over allegedly false claims that AT&T's service is cheaper than MCI's. Suppose that the typical consumer is a small b..
Explain the evolution of the innovation from its pre-infancy to next-decade state.
As previously discussed, interest rates are critical to the adequate balance of money supply and money demand in the economy.
Potential buyers within a segment should be:
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