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In the real business cycle model, suppose that government spending increases temporarily (i.e.,Gt increases but Gt+1 does not). Determine the equilibrium effects of this using the diagrams of labor market equilibrium and goods market equilibrium. Briefly explain why demand or supply curve shift in a certain direction. Could the comovement of macroeconomic variables be explained by fluctuations in Gt? That is, does the model predict the procyclicality of consumption Ct, investment It, employment Lt, and real wage Wt?
5.the benefit of cutting down a forest is 1 million now. the environmental cost of that harvest is 10year forever.1 at
You are the owner of a family-owned restaurant. You do not pay yourself a salary or an hourly wage. How and why does this practice affect the economic cost of serving your patrons?
Illustrate what price should firm charge to realize targeted profit. Illustrate what would be its (cost-based) mark-up ratio.
The minimum wage is typically set above the market-clearing wage in the market for labor. Using a graph with an upward-sloping supply of labor, a downward-sloping demand for labor, with the quantity of labor measured on the horizontal axis and the wa..
Starting with a positive output gap where aggregate demand is at a level less than full employment, assume that the annual Real GDP growth rate is equal to 2.5% and the annual supply side growth rate is equal to 2.5%. As a result:
indicating how it will influence your decision to open the pizza business in your town or community. Explain any additional variables that may improve the coefficient of determination.
If an economy experiences a decrease in consumer spending, most economists believe:
Your insurance firm processes claims through its newer, larger high-tech facility and its older, smaller low-tech facility. Each month, the high-tech facility handles 10,000 claims, incurs $100,000 in fixed costs and $100,000 in variable costs. Each ..
For “standard” goods, the consumption of a good today has no effect on future consumption. But the authors suggest that this is not true of all goods. Briefly explain the distinction between a “lagged-demand” and a “network” good. If the widgets are ..
Explain why do you think it is important for managers to understand the mechanics of supply and demand both in the short run and in the long run.
Between Q1, 2014 and Q1, 2015 measured Output in the non- farm business sector increased by 3.2%. During this time period the unemployment rate fell from 6.6% to 5.5% and total hours worked in the nonfarm business sector increased by 2.8%. What was t..
Now that have discovered how to calculate fixed costs, variable costs, marginal costs, total costs, average fixed costs, average variable costs, and average total costs, how does one calculate breakdown and shut down?
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