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(a) What is the difference between actual unemployment rate and natural rate of unemployment?
(b) In an economy, 5% of the employed workers lose their jobs and 20% of unemployed workers find jobs during the FY 2015. Calculate the natural rate of unemployment in that economy?
A developing nation faces inflation rates of 2% one year, 5% in the second year, and 12.5% in the third year. Find the geometric mean of the inflation rates.
A goatherd has the cost function c(y) = 2y2, where y is the number of tubs of goat cheese she makes per month. She faces a competitive market for goat cheese,with a price of $40 a tub. How many tubs should she produce per month?
Consider a static (one-period), closed economy with one representative consumer, one representative firm, and a government. The level of capital K and government expenditures G in the economy are both fixed exogenously. Formally define a competitive ..
How do bubbles challenge the classical theory of asset prices? Are bubbles necessarily inconsistent with the absence of arbitrage opportunities? Explain in detail. What are the social costs of bubbles? How did Shiller test the classical theory? What ..
Which of the following is not part of the index of leading economic indicators?
Explain how difficulty will it be for the owner to plan for this new competitive threat.
What market structure is Apple in? What are the characteristics of this market? Who is the competition? What are the barriers? How concentrated is this market?
How much must be deposited each month for 9 months at an interest rate of 6.9% per month to allow for a single withdrawal of $50,854.48 at the same time as the last deposit?
If instead the Fed wants to stabilize aggregate demand, how should it change the money supply..
What happens to price and output in the Cournot, Bertrand, and Stackelberg models if marginal costs increase by 10 percent? The market demand is p = a-bQ and the marginal cost is constant across firms, i.e. mc1 = mc2 = c. You may consider for two fir..
the last major conflict between the US army also Native Americans took place at
You buy a bond for $1118 that pays $20 interest ever 6 months. It will reach maturity in 9 years at which time it will return its face value of 1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate..
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