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Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market.
To finance this subsidy every pair of stilts purchased by someone who is tall is taxed at a rate of T percent.
Hurricane Sandy in 2011 destroyed much capital in houses, buildings, and infrastructure on the East Coast, but resulted in little loss of life or limb. What would you expect to be the effect on actualoutput and potential output in the short run (r..
You are considering to save some money. Out of your yearly income you will deposit a fixed amount per semester at a nominal rate of 8 percent per year compounded each 6 months during 5 years.
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
Calculate the equilibrium price/output solution and Determine the loss in consumer surplus due imposition of a $4.40 per bushel price support program. Explain your answers well.
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
Val Hawkins borrowed $15,000 at a 14% yearly rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end-of-year payments.
You are a manager of Kleenex and you compete directly with Puffs selling facial tissues in America. Consumers find the two products to be indistinguishable. The inverse market demand for facial tissues is P = 3-Q (in dollars) in America.
A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24.
What is the effect on M1? Ignore any actions the bank may take as a result of your having withdrawn the $100.
Hubert is a 72-year-old professor. He teaches only one or two courses a year, but he''s still pursuing an active research agenda.
Describe the structure of the Federal Reserve System. What are the responsibilities and functions of each of the components of the Federal Reserve System? What are the instruments of monetary policy of the Federal Reserve System? Explain each one.
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