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Where is monetary policy stronger? In an open economy, changes in monetary policy affect both interest rates and exchange rates. Comparing the United States and Switzerland, in which country would monetary policy have a more significant effect on GDP through changes in exchange rates?
If both manufacturers offer the same value, then 50 customers buy from each manufacturer. Find all symmetric Nash equilibria.
If you were a manager at PepsiCo, would you try to convince your colleagues that introducing the new soft drink is the most profitable strategy.
Using diagrams show what changes in price and quantity would be expected in the following markets under the scenarios given. Also say whether this represents a change in demand or a change in quantity demanded.
We can see that aid to Africa has increased significantly over the last 40 years and that incomes in Africa have stagnated. Explain why these two facts do not constitute proof that aid is not effective in increasing incomes in Africa.
In the U.S, the capital share of GDP is about 50 percent, the average growth in output is about 3 percent per year, the depreciation rate is about 4 percent per year, and the capital-output ratio is about 2.5. What must the saving rate be in the init..
A firm is currently producing 80 units of output. At this level of output produced, P = 150 and ATC = 120. Also assume that MC = 130 and MR is constant at all output levels and equal to 150. Is this firm making profits? If so, what are these profits?
Suppose there are n identical firms in a market. Each firm’s cost function is given by C = 25 + q2, where q is the amount that an individual firm produces. How much output will each of them produce? What will be the market price? How many firms will ..
Suppose we have the following market supply and demand schedules for bicycles: Price Quantity Demanded Quantity Supplied $100 70 30 $200 60 40 $300 50 50 $400 40 60 $500 30 70 $600 20 80. Plot the supply curve and the demand curve for bicycles. What ..
Aside from retail sales and marketing, identify and discuss two ways that a business could reduce costs or increase profits by using the Internet or Web applications.
Suppose you were provided a gift of a gold mine that generates $1,000 of net income every year, indefinitely. And suppose equilibrium rate of interest is 5 percent. Illustrate what is present value of that gold mine.
Elucidate why is productivity related to the standard of living. In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labor productivity.
What types of economic evaluations should Shadyville use to rationalize the decision between the implementation of Contingency Plan 1 and Contingency Plan 2? Why?
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