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Use Okun's law to calculate the GDP Gap if actual U= 10% andUn= 6%. If actual Gdp is 100, then what is the value for potentialoutput? I got the GDP gap and its +.08, how do you come up with thepotential output?If potential output is 10,000, actual output is 8,000 and Un=4%, then what is the actual unemployment rate according to Okun'slaw?
a firm produces according to the following production function: Q=k^.5L^.5 where q= units of output, k= units of capital, and L= units of labor. suppose that in the short run k=100. moreover, wage of labor is w=5 and price of the product
An investor lends $10,000 today, to be repaid in a lump sum at the end of 10 years with interest at 10% (=im) compounded annually. What is the real rate of return, assuming that the general price inflation rate is 2.7% annually.
To simplify the computations, suppose the cost of production is zero for both products. You have estimated that there are three types of customers, I, II, and III, who buy the products of the firm. There are 2,000 customers of each type, and they ..
A firm sandab has a production function x =f(h,k) =ln(h)+3ln(k), where x=pots of crabs caught, h=labor hours employed, and k= number of boats rented (all per week); k>1. San dab operates in perfectly competitive markets.
what is the maximum price you will pay for a bond with a face value of $1,000 and a coupon rate of 14% paid annually, if you want a yield to maturity of 10% Assume that the bond will mature in 10 years and the first payment will be received in one..
Lane college in Jackson, Tennessee is considering the conversion of an abandoned church pew manufacturing plant adjacent to the school's campus into a 34,000 square foot building to house the campus bookstore, a conference center, a small business..
Consumers are located uniformly along a straight 1 mile road that leads from the one end of town to the other (no cross roads exists). Each consumer wants to buy one unit of a good from an existing store. The transportation cost or the cost of wal..
The price at point a is $70 and the price at point c is $10 per bag. The price at point d is $40 and the price at point e is $20 per bag. The price at point f is $32 and the price at point g is $4 per bag. Apply the formula for the area of a trian..
Suppose your market research leads you to conclude that there are two distinct groups of consumers interested in the PCC, restaurants and homes. You determine that each has a different demand curve.
Show a consumers budget constraint and indifferance curves for wine and cheese. Show the optimal consumption choice. If the price of wine is 3$ per glass and the price of cheese is $6 per pound, what is the marginal rate of substitution at the opt..
Four wheel bearings are to be replaced on a company vehicle. The mechanic has selected the four replacement parts from a large supply bin in which 10% of the bearings are defective and will fail within the first 100 miles.
The following statement was released through FOMC following recent meeting on March 21. The Group, although hopeful for a future of moderate growth with moderating inflation,
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