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(a) Suppose that the matching function is given by: M = em(Q, A) = eQ^(0.7)A^(0.3) Express pc and pf as functions of e and labor market tightness j.
b) Suppose that z = 1, b = 0.4, e = 0.9 and k = 0.24. Suppose that w = 0.75 Find the unemployment rate in the economy.
(c) Suppose that e falls to 0.8. Suppose that w is unchanged. What happened to the unemployment rate, the labor force participation rate and output?
(d) Suppose that by law the wage is increased (while keeping all the parameters from part (c) unchanged). What is your prediction about the unemployment and participation rate?
Explain by how much would it have to increase government purchase to achieve this goal.
With an interest rate of 10 percent this person uses $100 current income along with an $80 bank loan to finance $60 of education. Explain how this individual should respond if interest rate increases. Discuss income and substitution effects.
Compare and contrast your chosen websites: which website is more likely to be successful than the other, and why and How well does the website personalise the experience for users?
The makers of Tylenol pain reliever do a lot of advertising and have loyal customers. In contrast, the makers of generic acetaminophen do no advertising, and their customers shop only for the lowest price. Assume that the marginal costs of Tylenol
Which of the following defines the quantity demanded?
a technology is invented that makes labor and capital perfect one to one substitutes in the production of mint
Evalute the strengths and weakness of Callaway, Taylor Made, Titleist, Ping, and Nike. Which company has a competitive advantage in the marketplace.
When the exchange rate falls by more in the short run than it does in the long run when the money supply increases, it is called.
ead the information in your notes and at WorldWideWebTax to decide. Make sure that you show your work on each circumstance and the overall benefit of standard versus itemizing.
Assume stock returns can be explained through the following three factor model:
Suppose you have estimated the consumption function as C=250=0.90Yd where Yd is disposable income. what is the corrosponding saving function?
Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?
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