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Use the following data to answer the following question:
Price level 10 20 30 40 50 60 70 80 90 100
Real GDP $500 600 680 750 820 880 910 940 960 970suppliedReal GDP $960 920 880 840 800 760 720 680 640 600Demanded
(a) If full employment occurs at real output of $880, how large is the real GDP gap? 70(b) How large is the AD shortfall? 120
( c) What will happen to the price if AD increases enough to restore full employment? Inflation
(d) Assuming MPC=0.75, how will macro equilibrium change if the government purchases inrease by $20? Demand will shift to the right
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The football coach at Midwestern university was given a 5 year employment contract that paid $225,000 the first year, and increased 8% uniform rate in each subsequent year. At the end of the first year the alumni demanded that he be fired.
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Year Units of Output Price Per Unit 1 3 3 2 4 4 3 6 5 4 7 7 5 8 8 1. Refer to the above data. If year 3 is chosen as the base year, what is the price index for year 2. Refer to the above data. What is the nominal GDP for year 4
The Conch Café, located in Gulf Shores, Alabama, features casual lunches with a great view of the Gulf of Mexico. To accommodate the increase in business during the summer vacation season, Fuzzy Conch, the owner, hires a large number of servers as..
Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent.
Corporate orders generate an avg. contribution of $100 per coat. Firm K has just recieved and unexpected order for up to 300 coats but has unused capacity to produce only 200. One manager recomends delivering 200 coats.
At the end of their useful lives, both A and B may be purchased with the same cost, benefits, and so forth. If the MARR is 12%, which alternative should be selected based on the internal rate of return using the least common multiple approach.
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