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1. What are expectations, and why are they important, in macroeconomic models? What would you think about a macroeconomic model that assumed that people's expectations of inflation were constant, even though the inflation rate changed over time?
2. What is the relationship between a country's savings, its government budget deficit, its domestic investment in physical capital, and its foreign investment?
problem 1suppose that the firms markup over costs is 6 and the wage-setting equation is w p1 - u z where u is the
This seems to have reversed itself somewhat in recent years. Illustrate what factors might have been at work.
What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor
Explain what accounts for the Hong Kong Monetary Authority behaving differently than the other central banks in emerging Asia.
What is the Elasticity of Demand? Is it elastic or inelastic?
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $58,000. If he adds one more tractor.
Why is an increase in the number of varieties of a good regarded as a gain from trade? Can you think of economic disadvantages associated with greater product variety? Explain. Is the distinction between "intra-industry trade" and "inter industry t..
On October 31, 2010 the USDMXN was 10.00. On the same date in 2011, the MXNUSD exchange rate was $0.07692
Adopting the main features of the neoclassical supply of labour, elucidate how these 2 factors may be related.
Just prior to signing the contract, a manager reads that one of TRW's competitors has introduced a comparable airbag using a new technology that reduces the cost by 30 percent. How would this information affect Honda's optimal contract length with..
Is this technology characterized by economies of scale? What is marginal cost and how does it compare to average cost?
Suppose the demand for a product is given by P = 40 - 4Q. Also, the supply is given by P = 10 + Q. A) What is the equilibrium price and quantity of the product B) What is the price elasticity of demand at the equilibrium price For the next 3 quest..
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