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A firm has a production function described as follows: "Weekly output is equal to the square root of the minimum of the amount of capital and the number of hours of labor used per week." Suppose that the cost of a unit of capital is r and the price of a unit of labor is w and the level of output is y. Write down the long-run total cost as a function of w, r, and y.
Elucidate why an upward sloping aggregate supply curve is thought to weaken the impact of a rightward shift of the aggregate demand curve generated by an increase in government spending in the short run.
Assume there is a central city school district in which the student population is predominantly black. What will there be a salary differential between black and white teachers.
The government begins providing health care subsidies for all Americans.b. Private investors become less optimistic about the economy.c. All overseas conflicts are ended and American troops return home.
There is no uncertainty about the future. The consumer needs to save an amount this year that will allow her.
elucidate how the changes in the monetary policy effectiveness lag and the interest-rate multiplier affects how much and how long monetary policymakiers must change interst rates in response to any given demand shock.
England can produce 50 units of wine if it produces no cloth, and 100 units of cloth if it produces no wine. Using this information, we can conclude that.
The economists also argued that the technical level of potential output had risen. Show their argument using the AD-AS model
Describe the free trade equilibrium. Then compute and graph the following effects of an import quota that limits imports to 100 bags.
As the Euro appreciates in value relative to the U.S. dollar, what happens to the price of U.S. goods in Europe. Elucidate what happens to the price of European goods in the U.S.
If capital gains tax is on nominal gains, Explain how much tax Sally pays on her gain. Calculate Kelly's capital gains if tax is on real gains.
How many units of labor should be employed? b. How many units of capital should be employed? c. What would be the total cost of production?
In addition categorize the level of elasticity of a product or service of your choice from real life depends on what you know happens to the percentage change in quantity demand when the price changes.
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