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"A spike in the unemployment rate-the biggest in more than 2 decades-raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing & credit markets are leading the US economyin to a painful recession. The gov. on Friday said that the unemployment rate soared to 5.5% in May from 5% in April- much higher than previously forcast. the surge marked the biggest one month jump in unemployment since Feb 1986, and the 5.5% rate is the highest level seen since Oct 2004. Unemployment is now a full percentage point higher than a year ago. CNN 6/6/08A. How does the unemployment rate in May compare to the rate during hte past few recessions?B. Why might the unemployment rate tend to actually underestimate the unemployment problem, especially during a recession?C. How does the unemployment rate in May compare to the estimated natural unemployment rate? What does this imply about the relationship between the GDP and the potential GDP at this time?
Suppose that some variable is growing at constant rate. a. Prove that the natural logarithm of that variable is a linea r function of time. b. Find the intercept and slope of the linear function in part a.
If the newer equipment is purchased, it will have end-of-year O&M costs of $8,000 and a salvage value of $20,000 at that time. If the old equipment is retained, it will have to be supplemented in years 3, 4, and 5 by leasing a hi-def add-on unit c..
There are two invididuals. The first (individual A) has the utility function \(u^{a} = x_{1}^{2} + x_{2}^{2}\) , x>=0, and endowment (1,2). The second (individual B) has utility function \(u_{b} = x_{1} + ax_{2}\) , a>0, x>=0, and..
It has been found that people who live in high sales tax areas are much more likely to purchase over the internet where they are usually exempt from sales tax from firms located in another state. The NGA has proposed a uniform tax of 5% on all int..
From the information in the table, calculate marginal and average products. Graph the three functions (put total product on one graph and marginal and average products on another). For what range of output does this function have diminishing marginal..
Jerry will receive the following payments: 905 in year 3, 952 in year 5 and 933 in year 9. What is the purchasing power of the present value of these payments if the market interest rate is 16% per year and the inflation rate is 8% per year
Analyzing domestic market for corn Qd= 1800 -125P-10pw Qs = 440 + 165P Quantities in millions of bushels; prices are measured in dollars per unit. Pw is the price of wheat. Pw = $20, calculate the equilibrium price and quantity of corn.
You are the manager of a firm that receives revenues of $30,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X..
Southwest Airlines (SWA) is planning to expand its fleet of jets to replace some old planes and to expand its routes. It has received a proposal from Boeing to purchase some old planes and to expand its routes. It has received a proposal to purcha..
two people live alone in isolated regions, have the same resources, grow potaotes and chickens, if one devotes resources to growing potatoes they raise 200 lbs a year. if they grow chickens they raise 50 a year. if they apportions some resourcs to ..
where L1 is the number of workers employed in Sector 1 and L2 is the number of workers employed in Sector 2. The total number of workers in the economy is 1,000. The only difference between the sectors is that in Sector 1 workers are paid their ma..
A company experiences rising returns to scale; that is, doubling all its inputs more than doubles its output. What can be inferred about the company's short-run costs?
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