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What are rational expectations? How do rational expectations differ from perfect foresight? Is monetary policy neutral under both assumptions?
Use the data above to graph the aggregate demand and aggregate supply curves. What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy Is the equilibrium real output also necessarily the full-employ..
There are two sectors of the construction industry that currently pay their employees the market-clearing wage. The demand for labor in each sector is MRPL = 12 - L,where L = the number (in thousands) of workers. The supply of labor in each sector..
suppose that Mr Rich withdraws $ 5 Million from his transactions account at the bank of america and holds the money . Assume a reserve requirement of 25 purcent and no excess reserves in the banking system prior to this withdrawal .
How many workers of each type will employers hire? If workers' abilities are not observed by employers, what is the equilibrium wage? How many workers of each type will employers hire? What is the deadweight loss due to asymmetric information?
What is the marginal product of the third worker? What is the marginal revenue product of the fourth worker What is the marginal cost of the sixth worker? Based on your knowledge of marginal analysis, how many workers should you hire
1. a. under a strict command-and-control framework suppose abatement standards are set equally across polluters. assume
What are the most important decisions (price, innovation, advertising and so on) on which the firms compete?
A Graybar motor costs $7000 and has an electrical efficiency of 89%. A Blueball motor costs $6000 and has 85% efficiency. Neither motor would have any salvage value, since the cost to remove it would equal its scrap value.
Explain intuitively why one is higher than the other?
Once everyone in the group has reported on the possible tax consequences, build on one another's ideas until, as a group, you have fully fleshed out the advantages and disadvantages of each approach to Bob's situation.
A foundry uses 3,600 tons of pig iron per year at a constant rate. The cost per ton delivered to the foundry is $145. It costs $92 to place an order and $18 per ton per year for storage. Find the minimum-cost purchase quantity.
Can you say what happened to the overall "price level"?
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