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Suppose that Frank is considering giving Mike eight paper back books in exchange for 2 CDs. Explain the conditions under which this trade would be mutually beneficial. Also explain the conditions under which Frank and Mike won't make the trade.
In an attempt to curb the problem of unemployment and win the forthcoming elections the government of the republic of zambia has decided.explain the types and causes of inflation.
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.
Given the elasticities in the above question and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, explain how higher gasoline taxes would affect the equilibrium price and quantity of SUV's..
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
Hurricane Katrina was a natural disaster that would have had an impact in the United State economy. What effect would Hurricane Katrina have on aggregate demand or aggregate supply, other things being steady?
Suppose that an raise in a household's disposable income from $40,000 to $48,000 leads to an raise in consumption from $35,000 to $41,000,;
Households at bottom, Business at top, Product mkt left, Resource mkt. right side. And government in middle. Also bank is out of flow between product mkt. and Business's with money flowing in and out of flow. Diagram only portrays flow of money betwe..
According to a recent article in the Wall Street Journal, side-impact crashes are among the deadliest, accounting for nearly 10,000 deaths per year.
A producer produces good y using inputs x1 and x2 according to the production function y = x1^(alpha)x2^(beta) where alpha + beta
A one-year, $100,000 loan carries a coupon rate and a market interest rate of 12 percent. The loan requires payment of accrued interest and one-half of the principal at the end of six months. The remaining principal and the accrued interest are due a..
The Federal Reserve unexpectedly increases the rate of growth of the money supply by 1%, and this change is expected to be permanent. What nominal interest rate will banks charge on new mortgages?
At a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is unit-elastic (Es = 1.0). So how many popsicles will be sold each day i..
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