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Assume you have a negotiation between Management and Labor concerning Labor wages. Management and Labor do well when they each do the opposite of what the other does i.e. the best situations for both are: (i) for management to bargain hard (offer low wages) and Labor to accommodate (accepts the contract offered) and (ii) for Management to accommodate (offer generous wages) and Labor to bargain hard (threatens to strike).
(a) If Management moves first what would you expect equilibrium of this sequential game to be?
(b) If Labor moves first what would you expect the equilibrium of this sequential game to be?
(c) Is this a game with a first mover or last mover advantage?
Explain what happens to the position of the nation's short-run Phillips Curve if the following events occur:
Assume that potential rural-urban migrant would work for two periods ( of some length) in either the rural or the urban area.
Elucidate implications would these policies have on the economy and specifically your personal and professional life.
Office building maintenance makes call for the stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology.
Suppose that property rights to the environment are established, and Jack has them. Further, assume that Jack and May can engage in costless bargaining.
Assume an economy in which the reserve ratio is 15 percent, people hold 10 percent of their deposits in the form of cash, and there are no other leakages.
Discuss the so called fiscal cliff and the expected impact for the State of Mississippi and the Mississippi Delta.
Eluidate the difference among comparative advantage and absolute advantage.
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
Explain how can this be sustained if people switch over to high priced goods which causes employees and companies in the lower priced goods market to go out of business.
Illustrate what price is required to maximize income but keep profits at a minimum of $300?
Explain the economic situation in the UAE based on the article. Summarize the articles with your own words
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