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1. Use the WS (wage-setting) and PS (price-setting) relations to examine the effects of the following events on the natural rate of unemployment and on the real wage. There is a technological innovation that makes workers more productive.
2. Less stringent anti-trust enforcement (leading to less competitive markets).
3. The impossible trinity suggests that a central bank can prevent a balance-of-payments crisis by limiting the cross-border flows of capital. True or false? Explain your answer
4. Define the AD curve and show graphically how the AD curve is derived.
2. What will happen to equilibrium income in the following cases a. The mpe is 0.8, and autonomous consumption declines by $200. b. The mpe and mpc are both 0.5, and taxes rise by $400. How much of an increase in government spending would be required
In approximately 1500 words answer the following question examine the proposition that there exists a correlation between the amount of gross fixed capital formulation and the rate of economic growth , explain the significance of your result (Please ..
A monopolist has to decide how to price its product in two markets and how to allocate product output between them. The markets are separated geographically by a national border
We assume there are no lump-sum taxes and no dividend income: ? = T = 0. We assume h = 1 and the wage rate w = 1. There is a consumption tax such that for each purchased unit of consumption, the consumer needs to pay 1 +t units where t goes to the..
1. explain the relationship between a firms short-run production function and its short-run cost function. focus on the
Why does lending short and long present a potential problem for banks and determine two effects that a government guarantee of financial institutions can have.
Outline a scenario in which you might be acting ethically but might still want to remain anonymous while using the Internet. Identify two approaches someone might take to learn your identity even if you attempted to remain anonymous.
Assume that market demand for aa perfectly competitive market in the short run is and market supply is P=Qs. Denoting firm level quantity by q
Using the values of DOL calculated above, calculate the profits for a 10% increase and 10% decrease in quantity.
If they expect inflation to be 6 percent? What if the expected inflation was 8 percent? How does this affect Geoff's incentive to borrow?
Define the natural rate of unemployment and what is the GDP gap if the level of unemployment is 4% above the natural rate?
Imagine a situation where a running competition is going so there is no error into it. You are invited to make a App to record the whole competition and keep this record to the App and provide ranking system.
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