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We know that investment spending depends on real interest rates, yet the demand for money is dependant on nominal, not real, interest rates. Why should money demand be dependant on nominal rates?
GRAPH the long-run profit of a monopolistically competitive firm. Do Monopolistically competitive firms generate a long-run profit? Why is a monopolistic competition said to be inefficient?
Industry-land was so named because it is highly industrialized. It is a world leader in production of manufactured goods. If industry-land put all its productive efforts into manufactured goods, it could produce 1,000 units per year. Draw a produc..
You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant, and ex..
Roughly speaking, a merger between two firms is legal:
John has the utility function U = Min{x,y}. The price of x is 1, the price of y is 1, and his income is 50. a) Find John’s optimal bundle. b) Suppose now there is a discount for the first 20 units of x John buys such that px=0.5 for those first 20 un..
Discuss which Explain how drop in the export sales sets in an ongoing recession using accelerator model.
A rise in the price level that leads to a change in the interest rate, and therefore to a change in the quantity of aggregate demand, will cause:
Do a discussion on the model of perfect competition also adopting strategies to gain marketplace power in competitive industries.
The given is natural logarithmic function. Ln(Q)=-0.23-0.34ln(P)+0.45ln(P2)+1.33ln(I). What is the price elasticity of demand for raspberries? What is income elasticity of demand?
How are economic fluctuations linked among national economies? Could a recession in the United States trigger a recession abroad?
The data in the first four columns represent price (P) and quantity demanded (Qd) in time 1 (before change in price) and time 2 (after change in price) for a specific good. Note that results should be expressed in absolute terms. For example, -1..
Assume the price charged in market 2 was $10, what would be the price charged in market 1?
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