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Unemployment and the Current Rate of Inflation
What is the current rate of unemployment and the current rate of inflation? Make sure you provide the source of your information. What is the president doing to help us in our current economic crisis? Do you agree/disagree with his proposals? Why?
What does Friedman believe about expansionary monetary policy? Do you think Keynesian economists would agree?.
Use the following data for a firm's output at various levels of employment to calculate: (a) its marginal physical product of labour (MPPL) schedule.
Consolidated Drugs, Inc. has spent $4 million developing and testing a new anti-aging drug. Management now estimates that it will cost $2 million to produce and market this new product.
Illustrate what is the point price elasticity for each person and for the market.
Suppose that there are two goods in the economy, and the price of each good is equal to 1. When Alice has income of $10, She consumes 1 unit of good y and 9 units of good r.
Suppose that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision.
Suppose each cake costs the same to make, what is the average cost to produce a cake. Compute Alyssa's labor productivity ration in dollars per hour for each type of cake.
Create another diagram; once again start from an initial macroeconomic equilibrium. Explain both the SR and LR impact of a contractionary AS shock on Y. Use the appropriate diagrams and provide a brief real world example of this type of shock.
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.
What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?
Problem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled.
Describe the opportunity cost of good 1 in terms of good 2. Find out the opportunity cost of good 1 at the point where x1=1.
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