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In his article, "How Statistics Lie: Unemployment Can be Good for You", Steven Landsburg is arguing that inflation rate calculated simply as rise in price levels is not very informative.
a) Explain the situation in terms of income and substitution effects.
b) Will your answer differ whether the goods are inferior or normal? Explain.
What changes in sales would you anticipate if you were manager of a Dodge/Plymouth franchise. What is each firm's marginal revenue.
The equilibrium allocation is stationary over time. Write down the market-clearing condition for an arbitrary date t. Find the real rate of return of at money at the monetary equilibrium. What is the gross rate of in ation?
An article in the Wall Street Journal reported that large hotel chains, such as Marriott, are tending to reduce the number of hotels that they franchise to outside owners and increase the number the chain owns and manages itself. Why would Marriott w..
If the college charges all students the same tuition, illustrate what tuition can it charge to cover all of its costs.
what is the formula for that equation? Assume you have 5 uneven payments to make and you want to know what you will be paying at 10% per payment (year) on this uneven payment.
Draw the complete Solow growth model, identify equilibrium and label completely and correctly. Now suppose that there is a negative shock to total factor productivity. Draw the implications of this change on your graph. Identify the changes to per ca..
What would be the difference in the bargaining position of an academic medical center and a large tertiary community hospital system? How might state and national governments respond to this expanding phenomenon?
suppose a firm has an annual budget of 100000 in wages and salaries 50000 in materials 20000 in new equipment 10000 in
We also observe that the proportion of workers receiving disability benefits is much lower in the US than in the latter two nations. Are these findings consistent with the work-leisure model.
The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade?
Select an industry or firm and state what is the market structure (pure competition, or monopoly, or monopolistic, or oligopoly).Define the characteristics of the industry or firm to support your selection of a market structure. Describe or illustrat..
Suppose two firms are competing in prices (Bertrand) in an industry where demand is p=200-4Q. If both firms have MC=120, what is the equilibrium quantity for each firm? Profits? Suppose one firm has MC=120 and one has MC=100. Approximately how much p..
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