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A permanent TFP shock: Now consider a TFP shock that is permanent. For example, suppose the discovery and application of a new technology makes firms more productive. Consider the labor market block of a standard DSGE model with no sticky prices or wages.
(a) What happens to the labor demand schedule?
(b) What happens to the labor supply schedule? (Hint: What happens to consumption?)
(c) Why is the net effect on employment ambiguous? What happens to the real wage?
At $300, a total of 10,000 ounces of output is profitable. Similarly, total production increases by 5000 ounces for each sucessive $100 increase in the price of gold. Describe the relevant relationship between the price of gold and the production ..
Do you think setting a minimum wages for the workers would have an impact on poverty reduction? Give reason for your answer.
Calculate the cost of the insurance in pounds sterling
a. What is the equation for demand? What is the equation for supply? b. At a price of $9, what is the price elasticity of demand? What is it at price of $12?
The Obama campaign says that government spending on infrastructure and education is the best way to encourage economic growth. Is it correct to say that the Romney campaign is using a "Neoclassical" model and the Obama campaign is using a "New Gro..
What are the three macroeconomic goals? Find an article that shows a connection between a current event and two of the three macroeconomic goals.
This problem related to Economics, mainly Macroeconomics. The problem is clarify the economic condition of Kuwait. Kuwait is one of the world's richest countries
1) Ken will receive a $5,000 annual payment from a family trust. This will continue until Ken in 30; he is now 20. Inflation averages 4% and Ken's real MARR is 8%. If the first payment is a year from now and a total of 10 payments are to be mad..
Determine the strategic manner in which the United States can apply best economic best practices from other countries in addressing these issues.
What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y will you now purchase?
Using circular flow model, explain the flow of money and goods in an economy. How economy coordinates society's independent economic actors. A country's gross domestic product (GDP) and how it is defined and calculated.
Customers to Live Theaters, Inc. can be divided into two groups: seniors and everyone else. The inverse demand curves for each of the two groups are given below. The marginal cost (which equals the average variable cost) of serving an additional p..
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