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During the most recent recession—the so-called Great Recession—the United States government increased the amount of time an individual was eligible for unemployment benefits from a maximum of 26 weeks to a maximum of 99 weeks. How is this likely to change the incentives facing the unemployed? (To be eligible for unemployment benefits, one must be “looking for work” and not have refused “suitable work”) What might this do to the unemployment rate measured in the economy in general?
Y at PPP is only 0.05. It is well-known that investment rate dierenHSL39502.bmpe when measured at a common set of prices while very small when measured at domestic prices.
In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 percent. If the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal ..
Indicate what the short-run price elasticity of demand for tires is 0.9. If a tire store raise the price of a tire from $50 to $60, by the price elasticity of demand.
The equation for the original demand curve is Q=50-6.25P. Find the new demand equation when demand increases by 20% (Round to one decimal place). Q=___ - ___P. Find the new equilibrium price and quantity after demand increases 20%. P= ___ Q=___ (Roun..
Suppose the own price elasticity of demand for good X is -3, its income elasticity is -2, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is -5. Determine how much the consumption of this good will chan..
A university has a fixed number of parking spaces for students on campus. They are currently sold at a price that clears the market. Suppose there is a proposal that the price should be lowered and a lottery held to determine who may park on campus. ..
To give Mom a day of rest, Dad plans to take his two children, Bart and Cassie, on an outing on Sunday. Bart prefers to go to the amusement park (A), whereas Cassie prefers to go to the science museum (S). What is the rollback equilibrium to this gam..
The down payment is paid immediately, and the monthly payments are due at the end of each month. The effective annual interest rate Helen is paying is most nearly?
q.as an analyst at the treasury department you have been asked to predict the behavior of key macroeconomic variables
Show each of the following events on a bank’s T-account:
Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
Suppose that people expect inflation to equal 3 percent, but in fact, prices rise by 1 percent. Describe how this unexpectedly low inflation rate would help or hurt the following: homeowner with a fixed- rate mortgage. a union worker in the second ye..
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