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Why does a price index based on constant weights tend to overstate inflation in periods after the base year when the price of one good is rising quickly compared to other goods?
Because people tend to buy cheaper substitutes instead of the good whose price is quickly increasing. But the constant-weight index includes the similar quantities of the expensive goods.
Define the returns to scale in production technology. Returns to scale in production technology: Assume that we are using some vector of inputs x to generate some output y a
A firm's production function is given by Q = √LK . The price of labour is w and the price of capital is r. a. The price of labour is $5 and the price of capital is $20. What is
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How to use Demand and Supply tools to analyze the case of the Egyptian labor market?
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Crumble Corporation produces cookies. Here is the relationship between the number of workers and output (in dozens of cookies) in a given day: Workers Output Marginal Product T
# define output#
when the demand function is 2Q-24+3P=0,find the marginal revenue when Q=3.
if nominal GDP in 2002 exceeds nominal GDP in 2001, did real output rise?
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