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Question
The first column of the following table describes the price movement of AOL Corporation stock over a five-year period. The second column gives the period's consumer price index. Calculate the real value of the stock for each time period using year 5 as the base year. If you purchased $1,000 worth of AOL Corporation in year 1, what has happened to the purchasing power of your original $1,000 investment when you sell the stock in year 5?| Year | AOL | CPI |
| 1996 | $4.00 | 147.8 |
| 1997 | $3.84 | 155.3 |
| 1998 | $7.00 | 163.0 |
| 1999 | $37.00 | 165.4 |
| 2000 | $70.00 | 172.1 |
Answer
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Related questions
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For net present value calculations, the rate of return that one could earn by investing in another project with similar risk is known as the:
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If the inflation rate falls and nominal interest rates are unchanged,
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Q:
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Q:
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Q:
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Q:
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Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and both groups of workers initially earn the perfectly competitive wage. What happens to the equilibrium employment level and wage for union workers if the union exercises its bargaining power?
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Q:
Scenario 14.4:
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TP = 100L - 0.125L2 MP = 100 - 0.25L
where L is the amount of labor employed. The supply curve for labor and the marginal expenditure curve for labor are given as follows:
L = PL -5 MEL = 2L + 5
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A) Marginal product of labor
B) Marginal revenue product of labor
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Under an upward sloping supply curve for land, the economic rents to land ________ as the demand for land shifts rightward.
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Use the following statements to answer this question:
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Q:
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Q:
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D) can increase profit by expanding the employment of the factor of production.
Q:
An increase in technology that enhances labor productivity will likely result in:
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B) an increase in labor employment and an increase in the wage rate.
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Q:
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Q:
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D) increase the sum of leisure plus hours worked.
Q:
The marginal revenue product can be expressed as the
A) additional revenue received from selling one more unit of product.
B) increment to revenue received from one additional unit of input hired.
C) marginal physical product of an input times the average revenue received from the sale of the product.
D) average physical product of the input times the marginal revenue received from the sale of the final product.