Learning Team Deliverable Week 4 Learning Team Deliverable TA-4D) Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions. Are recessions a necessary fact of macroeconomic life? If not‚ what would it take to eliminate them? If they are unavoidable‚ what types of business can benefit from them? How would a recession affect your
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Section – I 1 Citrus Speculation and Forecasting‚ Inc‚ has been hired by a private consortium of orange growers to predict what will happen to the price and output of oranges under the conditions below. What are your predictions? For each part‚ sketch a graph showing the appropriate demand and supply analysis. a) A major freeze destroys a large number of the orange trees in Florida. b) The American Medical Association announces that drinking orange juice can reduce the risk
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Part 2. Total 50 marks ( 10 marks each). 1. Explain why you would be more or less willing to buy gold under the following circumstances: a. Gold again becomes acceptable as a medium of exchange. (2 marks) b. Prices in the gold market become more volatile. (2 marks) c. You expect inflation to rise‚ and gold prices tend to move with the aggregate price level. (3 marks) d. You expect interest rates to rise. (3 marks) Outline of solutions: (a) More‚ because it has become more liquid;
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Here are my musings for chapter 3.This chapter consists of applications – some of which are complex – of the labour supply model to social insurance programs. The central theme of this chapter is the central trade-off that any social insurance program faces between the goal of alleviating economic hardship for those who suffer income losses on one hand and the goal of maintaining reasonably strong incentives to work. In a nutshell‚ these very important programs – which are considered to
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Demand Estimation Debbie Allen ECO 550 August 10‚ 2014 Dr. Lundondo Mumeka Demand Estimation In this essay I will assume the role as an employee for the maker of a leading brand of low-calorie‚ frozen microwavable food chain. Using the data from 26 supermarkets around the country for the month of April and the equation data that has been provided to me‚ I will compute the elasticity for each independent variable as well as determine the implications for each of the computed elasticities for the
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Team Reflections ECO/365 August 5th‚ 2013 Team A felt that week four was a little overwhelming‚ but we certainly looking forward to moving forward. Collectively‚ we felt week three and its material was a lot to handle and an abundance of information. Week four’s objectives were less complex then the previous weeks and we felt more comfortable with each of the objectives. The material for week 3 was just easier to relate to. The discussions with classmates and our
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Week 4 Reflection Summary ECO/372: Macroeconomics July 8‚ 2013 Dr. Joe Timmerman Week 4 Reflection Summary In week 4‚ we discussed the problems with the fiscal policy and how we felt about the limits of the fiscal policy. When spending is greater than income there is a deficit; a deficit is a shortfall of revenue payments. Some of the team struggles with understanding when the economy is in a recession‚ why a deficit is good for the economy. As a team we also reviewed the total debt in the
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The Differences Between Macro & Micro Economics . Microeconomics • Microeconomics studies business decisions made on an individual level. A small business owner‚ for example‚ must consider all sorts of financial decisions in order to keep a business afloat and operating‚ such as the allocation of resources‚ and must follow the tax and state regulations created by the government. Price levels must also be determined with the help of supply and demand. A business owner must thus need to know how
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1. An article in Marketing News argued that the level of significance used when comparing two products is often too low – that is‚ sometimes you should be using an α value greater than 0.05. Specifically‚ the article recounted testing the proportion of potential customers with a preference for product 1 over product 2. The null hypothesis was that the population proportion of potential customers preferring product 1 was 0.50 and the alternative hypothesis was that it was not equal to 0.50. the p-value
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Long-Term Investment Decisions EC0-550 June 20‚ 2014 Royersford Knitting Mills‚ Ltd.‚ sells a line of women’s knit underwear. The firm now sells about 20‚000 pairs a year at a average price of $10 each. Fixed cost amount to $60‚000‚ and total variable cost equal $120‚000. The production department has estimated that a 10 percent increase in output would not affect fixed cost but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent
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