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What is seignior age? In what sense is it an inflation tax?
What are shoe-leather costs?
What are menu costs?
What are the costs of unexpected inflation?
How can the expected inflation rate be determined?
How does inflation uncertainty affect the allocation of resources?
Are there any benefits to inflation?
In the text, we considered a sequential move game in which an entrant was considering entering an industry in competition with an incumbent firm. Consider now that the entrant, if fought, has the possibility of withdrawing from the industry (at a..
imply a lower standard of living in every of the three nations compared to the situation where they are united into a single new country.
Explain how is Brazil affected, explain how does the size of this effect depend on the volume of trade between Brazil and the United States.
Suppose that the demand for money increases. Using a diagram with a money demand curve and a money supply curve, determine the effect on the interest rate.
Compute the new macro equilibrium under the assumption that the central bank does not respond to this shock and explain how the central bank could choose to validate this shock. Alter the AD curve to build this "validation" into the model and comput..
The UAW labor contract with General Dynamics expired in October 2001. IN the months preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract.
Analyze the modern notion of microfoundations with Marx's 'real foundation' for the analysis of economic activity.
Assume you executed a 90-day forward contract to exchange 100,000 Swiss francs into US dollars. How many dollars would you get 90 days hence.
Suppose prices are determined as a simple mark-up over expected wages: p-w^e=a0-a1U Assume further that wages are a simple mark-up over expected prices: w-p^e=B0-B1U Use the equations above to show that when prices are different from price expectat..
When 50 employees are used, the average product of labor is 50 and the marginal product of 50th worker is 75.
Suppose that the pound is pegged to gold at 6 pounds per ounce, whereas the franc is pegged to gold at 12 francs per ounce. This, of course, implies that the equilibrium exchange rate should be two francs per pound
Robinson Plastics makes clear plastic products with injection molding techniques. Their latest invention is a plastic cup with a sharp blade mounted inside to cut prescription pills into small pieces. The cup is placed over the pill and as the cup..
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