Factory X is responsible for producing the iPhone 6 and 6-plus.
For simplicity, we will assume that all materials needed to produce the iPhones are comprised under the
name iPhone Capital. What is also needed, of course, to produce the phones is iPhone Labor. At

38. What would you predict about the relative price elasticity of demand for leafy vegetables? The demand for leafy vegetables is A. more price elastic than the demand for leafy vegetables sold at your local supermarket on Wednesdays, since the product group of leafy vegetables

8. You plan to retire in 25 years. You are going to deposit an amount beginning one year from now and ending at the end of year 25. At the end of your first year of retirement you plan to withdraw $80,000, and make an

Mischa deposited $128749 into an account paying 6%, compounded annually. The account had the following cash flow (assume all activity occurred at year end): Year Activity Type $ Amount 3 Withdrawal $11147 5 Deposit $28302 9Deposit $23588 11 Withdrawal $39452 16 Deposit $38591 Using the

Suppose now that rather than being a small nation, Country Lambda is a large nation relative to the rest of the would such that Country Lambda may import the good based on S Additionally, suppose the domestic manufactures of Good Z successfully lobby for

7. Shifts in supply or demand I The following graph shows the market for peanut butter in Miami where there are over 1,000 stores that sell peanut butter at any given moment. Suppose the price of hazelnut spread decreases. (Assume that people regard peanut butter

Assume a country in a liquidity trap. The country has floating
exchange rates. Then suddenly the nominal interest rate in the rest
of the world decreases. Draw an AA-DD diagram and the appropriate
AA-DD equilibrium before and after the decrease in the foreign
interest rate.
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Suppose that inventories rise by $3 billion, consumption increases by $10 billion, welfare payments increase by $2 billion, and imports fall by $4 billion. By how much should measured GDP change?

In democracies the policymakers with different preferences tend to change each other more often than in autocracies. Thus economic dictatorship may solve the problem of dynamic inconsistency in policymaking. Explain pros and cons of each of the political regime through the lenses of dynamic inconsistency.
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Assume an economy with floating exchange rates, price level is
100, exchange rate is 20, money supply is 10 million. Then suddenly
the central bank increases money supply with 100% and keeps money
supply at that (higher) level permanently. Calculate real money
supply (M/P) in