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Question: Consider a one time change in govemment policy that immediately and permanently increases the level of the labor force in an economy (such as a more generous immigration policy). In particular, suppose it rises permanently from Z to L'. Assuming the economy starts in its initial steady state, use the Solow model to explain what happens to the economy over time and in the long run. In particular, comment on what happens to the level and growth rate of per capita GDP.
Bob lost his job and had to move back in with his mother. She agreed to let Bob have his old room back on the condition that he pay her $1000 rent per year.
For each of the following, draw a diagram that illustrates the likely effect on the market for eggs. Indicate in each case the impact on equilibrium price and equilibrium quantity.
What is the maximum technical efficiency output level for this firm ? On the diagram above, AVERAGE FIXED COST is the LOWEST at .what Quantity ? On the diagram above, AVERAGE VARIABLE is the HIGHEST at. what Quantity ?
exercise 1the following production plans are feasiblethe negative numbers stand for inputs and the positive one for
Suppose two firms supply the market for computer chips and their products are perfect substitutes. The firms choose what quantity to produce independently, i.e. compete as Cournot. The market inverse demand is described by p = 120-20Q, Q measured in ..
predict what would happen to the equilibrium price of marijuana if it were legalized. use demand amp supply analysis to
explain how the circular flow diagram relates to the current economic situation. using the circular flow diagram
What will happen to existing supply avenues? What would be the costs and benefits to governments
what is the difference between contractionary and expansionary monetary policy? what is the intention of each policy
Briefly analyze in terms of supply and demand the effects upon the given market of the following events. Are these changes a shift in the demand curve, a shift in the supply curve, a movement along the demand curve,
Is it possible to collect new tax revenue, and at the same time guarantee that the poor individual will not be made worse-off by the new carbon tax? Be specific, and make sure you calculate the final tax revenue. Assume the government is able to o..
Company M and N compete for market and decide independently how much to advertise. Every one can expend either $10 million or $20 million on advertising.
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