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We spent considerable time discussing the consumer price index (CPI). What is the CPI? How is it constructed? What is it used for? Compare the CPI to the GDP Deflator.
Microeconomics, Economics
Question: In the Keynesian cross model, assume that the consumption function is given by C = 120 + 0.8*(Y-T) Planned investment is 200; government purchases and taxes are both 400. a. Graph planned expenditure as a funct ...
Question: This learning activity focuses on constitutional authority to regulate business and constitutional law concepts. Case Scenario: City enacted a city zoning ordinance that barred outdoor advertising display signs ...
Question: The ratio of capital spending to GDP rose sharply during the latter 1970s, even though bond yields rose sharply during that period. It then increased even further during the early 1980s, when bond rates peaked. ...
Question: 1. How do managerial economists distinguish between short and long run for business? 2. In most production processes the short run average cost of production typically drops as more is produced, but eventually, ...
Question: The argument for free trade has been a main theme of international trade economic theories for centuries. Donald Trump believes that a tariff of approx. 30-40% should be placed on products coming into America f ...
Question: Three firms are considering entering a new market. The payoff for each firm that enters is 150/n, where n is the number of firms that enter. The cost of entering is 62. Find all the pure-strategy Nash equilibri ...
Question: Suppose and economy described by the Solow model has the following production function: Y=K^0.4(LE)^0.6 a) For this economy what is f(k) ? b) Use your answer to part a). To solve for the steady state value of y ...
Question: a. Find the Nash equilibrium (and also explain how you come up with this equilibrium) b. Explain the implication of this equilibrium with regard to its stability and its role as an efficient allocator of resour ...
Question: A firm has a fixed production cost of 5, 000 and a constant marginal cost of production of 500 per unit produced. a) What is the firms total cost function? Average cost? b) If the firm wanted to minimize the av ...
Question: Suppose that demand for rollerblades is given by D(p) = A - p. The cost function for all firms is C(y) = wy2 + f , where f is a fixed set-up cost. The marginal cost of production is MC(y) = 2wy. Assume that the ...
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