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The European Commission, which is the management arm of the EU and with which the government of Italy must negotiate, argues that the increase in Italy's natural unemployment rate as well as the narrowing of the gap between potential and actual GDP does not support Italy's proposed increased government spending. Explain. (By the way, a "structural budget deficit" is what the government's budget deficit would be if the economy's actual real GDP = potential real GDP.)
Do YOU agree? Why or why not? Clearly state one such agro oriented vulnerability along with your recommendation for mitigation through vulnerability reduction.
The quantity of money grows at a rate of 20 percent a year, real GDP grows at 8 percent a year in the long run, and the velocity of circulation is constant. What is the inflation rate in the long run
when does a recession begin and when does it end?the dating of a business cycle is done by the business cycle dating
Suppose that normal workers increase a rm's revenue by $6, while smart workers increase revenue by $A, where A > 6. Firms cannot tell smart workers from normal workers ex ante, but can observe a worker's educational level.
What is the equilibrium output of such knives. Illustrate what is the equilibrium output of such knives.
Of the total liabilities, $190 million were deemed to be financing liabilities. Make a reformulated balance sheet that distinguishes items involved in operations those involved in financing activities.
In the gains from trade diagram in Figure, suppose that instead of having a rise in the relative price of manufactures, there is instead a fall.
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
What do these numbers tell you about the phase of the business cycle in the United States, Euro area, and Japan in 2008? What do these numbers tell us about the relative size of the natural unemployment rates in the United States, the Euro Area, an..
A consumer is given the chance to buy a baseball card for $1, but he declines the trade. If the consumer is now given the baseball card, will he be willing to sell it for $1?
Consider the following situation: a person sells fishes by the seashore, assuming that he is a monopolist, and that there is no cost of production of output. The inverse demand curve for his fishes s is given by: p( s ) = 10 -s. Plus, assume th..
Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate and which contract should the player accept, based on the concept of present valu..
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