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For each of the following examples, identify the type of unemployment.
a. Marty has been laid off from her job at an aircraft plant but expects to be recalled when the economy picks up.
b. Scott has just graduated from college and hasn’t found a job yet.
c. Kishore works as a lobsterman in Maine in the summer, but the industry shuts down in the winter.
d. Doug worked in an automobile plant in Michigan, but the plant was shut down permanently.
The price per unit remains $7.50 in both scenarios. Does the labour analyst's argument hold? Explain why or why not, and use data to prove your point. (Hint: calculate total costs in both circumstances).
Explain the basic logic behind the multiplier in words. Why does it require b, the marginal propensity to consume, to be between 0 and 1?
Find out what quantity of the book Warm fuzzy should print, and what price it should charge in order to maximize profit.
Consider the following data, which applies to Avataria and Twilightia in the years 1990 and 2010. In both countries the production function in per worker terms is: y = A(k)^1/2(h)^1/2. Country; Year; Output per worker, y; Physical capital per..
Explain how would each economist explain unemployment and what policies would each advocate.
Explain how has the relative composition of M1 changed since 1965? Do your best to explain why this change has occurred.
Anybody Coal Corporation expects tough economic situations for foreseeable future. Their current beta is 1.2, the risk free rate is 10 percent and the required rate of return on the market is 15 percent.
What will happen to Y (GDP), r (real interest rate), P(price level), and I(investment), in the short run ?The answer should indicate will these values increase or decrease in the short run.
Suppose a growing world with positive real income andeconomic growth. There are some lower income countries producinggoods for basic necessities of life. If income of the poor peoplebelonging to lower income countries increases
An ice cream shop read in the local paper in which the elasticity of market demand for ice cream
Consider a Stackelberg game with three firms (1, 2 and 3) where firm 1 moves first and firm 3 moves last. What quantities will they choose if they have zero costs and the demand curve is p = 100 - q
Before the merger, each of the separate newspapers was losing about 10 million per year. what forecast would you make for the merged firms profits.
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