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1. Why is money neutral in the real business cycle model?
2. How can the real business cycle model explain the behavior of the money supply over the business cycle?
On a new graph draw the same budget line you found in part (a). Now draw a set of indifference curves that illustrates why Toni might not be better off with the frequent flyer program.
Using the following demand schedule, compute marginal and average revenue: Quantity 1 2 3 4 5 6 7 8 Price 100 95 88 80 70 55 40 22 Suppose the marginal cost of producing the good above is constant $10 per unit.
Your utility function for present and future consumption is given by U(P,F)=P*F. You earn an income of $50,000 in the present, and will subsequently earn an income of $50,000 in the future. Will you be a net borrower or net saver.
List and explain the ways by which firms usually finance their investment projects. Explain the rate of returns required by each method of financing. What are the implications of multiple ways of financing for a firm, each with its own rate of ret..
A total of 1000 residents in Minnesota were asked which season they preferred. The results were 100 liked winter best, 300 liked spring, 400 liked summer, and 200 liked fall. If the data were summarized in a frequency table.
If the local government can enforce a rent-control law that sets the maximum monthly rent at $1000, will there be a surplus or a shortage? Of how many units? Explain how the market can adjust?
a private-garage owner has identified two distinct market segments short-term parkers and all-day parkers with
Sketch Coretta's total product curve for chairs, where the variable input is the time she spends, and the output is the total number of chairs produced.
Assume that this market is competitive and use side-by-side firm and market diagrams to show what happened to prices, quantities, number of firms, and profit as this market evolved over a couple of years. (Hint: Consider the possibility that firms..
Explain the difference between nominal and real income? Why do economists apply price indexes when comparing GDP and other income procedures during differing years? Do price indexes seem to help?
If the total height of the vessel is reduced to 5.5 cm, what is the adsorbed fraction? Assume that n-nonane does not adsorb to the vessel wall.
Fred Smith owns a British Consul, a security which pays the equivalent of $1000 U.S. each year on September 15, forever. Fred has recently considered selling the security. The current interest rate is 10% a. What is the minimum sales price he must..
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