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Define the terms potential output, expansionary gap, and contractionary gap. Why might actual output exceed potential output (an expansionary gap)? Why might actual output be lower than potential output (a contractionary gap)?
Business Economics, Economics
If a new technology in the U.S. shale oil extraction could produce crude oil even more efficiently; at the same time, the U.S. federal government decided to subsidize people for electric car purchase, what would you expe ...
1. The following table shows the prices and quantity demanded of Alberta wheat in 2014 and 2015. The change in 2012 resulted from exceptional weather, resulting in a bumper crop. 2014 2015 Bushels demanded 1.74 billion 1 ...
BUSINESS ECONOMICS ASSIGNMENT - Part - Macroeconomics - Answer any five (5) of the following questions. Question 1: Suppose the following are National Accounts data for a given year for some particular country: Measure / ...
What is the types of cost: fixed, variable, and marginal in economics, and methods that market power alters the relationship between a firm's costs and the price at which it sells its product?
The head of retail sales at a large cosmetic company was interested in determining what the best marketing model was for launching a forthcoming new product to ensure high sales. She ran two separate simple linear regres ...
A local article reported that at least 50% of the construction jobs in the metropolitan Dallas area are being filled by undocumented foreign workers. Kim Brown believes the actual percentage is much lower than that, and ...
Now assume that a country A takes 100 hours to produce 20 aircraft or 10 jet engines and country B takes 100 hour to produce 15 aircraft or 5 jet engines. Which country has an absolute advantage in which product? Does ei ...
Consider the following series of payments: Year 0: 20 Year 1: 30 Year 2: 40 Year 3: 10 Year 4: 5 Using an interest rate of 10%: a. What is the present value of this series of payments? b. What is the future value of this ...
What type of exchange rate is associated with a higher probability of experiencing a crisis? Why?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p
Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As
Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int
Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As