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During the 1990s, Western Europe experienced high rates of unemployment, while in the US, rate of unemployment remained far below natural rate. Use the insights of the classical and Keynesian views of wages and unemployment to explain the differences in unemployment rates between the US and Western European countries.
Compute and contrast the way Keynes and Friedman approach the economy. What are the key differences and similarities.
What is the equilibrium price of a box. Is this the long-run equilibrium price. Expalin how many firms are in this industry when it is in long-run equilibrium.
A medium sized bakery has just opened in Slovakia. A loaf of bread is currently selling for fourteen koruna over and above the cost of intermediate goods
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
A firm has estimated the following demand function for its product: Calculate the advertising elasticity of demand and explain its meaning.
A company in a perfectly-competitive industry where market price of output prevailing is $50 per unit has a cost function where;
Developing nations are often concerned that their terms of trade might deteriorate as economic growth occurs.
Price benefit analysis of an irrigation project describes the ratio of the discounted current value of benefits to costs is less than one.
Show the competitive position of 5 or more different firms within this industry
In the light of the Ricardian model, how might you evaluate the claim by developing nation that they are at a disadvantage in trade with powerful industrialized countries.
Be sure to describe the two step method used in FASB 52 and how highly inflationary economies
Illustrate what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
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