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Productivity often rises during economic expansions and fa
1.Productivity often rises during economic expansions and falls during economic recessions. Can you think of reasons why? Briefly explain. (Hint:Remember that the level of productivity involves both levels of output and levels of labor input.)
2.Use the following data to calculate (a) the size of the labor force and (b) the official unemployment rate: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs,10.
3.Explain how an increase in your nominal income and a decrease in your real income might occur simultaneously. Who loses from inflation? Who loses from unemployment? If you had to choose between (a)full employment with 6% annual rate of inflation and (b) price stability with an 8% unemployment rate, which would you choose? Why?
Briefly explain in words the sequence of changes that occur as the two economies move from no trade to free trade.
Consider a competitive market for which the quantities demanded and supplied (millions per year) at various prices are given as follows:
Explain how the Environmental Protection Agencys policies impact business in the US.
Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to
Draw a graph showing hte above situation. Include in that graph, the monopolist's cost curves, demand and marginal revenue curves and the price and quantities that are indicated by the situation described above.
Michael can buy either pizzas or submarine sandwiches. If the prices of pizza and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will
Illustrate what rate of return will the investor receive after the effect of inflation has been accounted for.
Explain why would this be described as a Prisoner's Dilemma game.
Tables John Walker is a regional sales representative for Jiffy Mowers Inc. and sells lawn mowers to stores in the Tri State area. Construct a table showing Walkers marginal sales per day in each state.
Explain how do high inflation rates affect the exchange rate of a country in the short and the long run.
Recently, a troubled bank borrowed $800 million from the Federal Reserve. Describe the impact this event had on the monetary base.
Compute the effective price reduction resulting from the coupon promotion.
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