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1) Using an Aggregate Supply Aggregate Demand model and a few well-chosen sentences, explain why the unemployment created by cost-push inflation is so problematic for an economy's labor market.
2) Use a monopsony model to show workers exploitation. How might a union correct for this inefficiency? How might a union create inefficiency?
Suppose the price of Y, PY = 1. Calculate the price of X, PX that will lead to a competitive equilibrium.
Assume that at this time in the nation of Economic when families split up there are no required child support payments.
Over the past 30 years there has been a marked increase in foreign direct investment (FDI) in the world economy. Please read the following Forbes article and discuss why foreing direct investments are a better solution for many multicultural firms..
Describe the end of the war and the writing of the Treaty of Versailles. What were the terms of the treaty? Which nations were involved in writing the treaty? What was the American reaction to the treaty? Why?
The conventional wisdom has been that inflation is bad for the economy. If our inflation is running higher than our trading partners' inflation, according to this argument, our growth slows and jobs are lost. Explain how the mechanism described here ..
Write a summary to discuss your data findings and the proposed solutions generated based on applying econometrics and analyzing the data. You are required to submit the selected data, methods for testing and validating data, and the economic decision..
1. The Gondwanaland Chairman of Production reported that the new Altair chariots (most modern, horse drawn family chariot) had a PRICE elasticity of 3 and an INCOME elasticity of 2. The supply of these Altair chariots is elastic. Evaluate the foll..
Describing What are the two main phases of a business cycle?
A firm is currently producing 80 units of output. At this level of output produced, P = 150 and ATC = 120. Also asume that MC = 130 and MR is constant at all output levels and equal to 150. Is this firm making profits? If so, what are these profits? ..
The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
The Food and Drug Administration (FDA) just gave you the approval to sell your new patented drug which reduces the aches and pains associated with doing IO homework. You spent 10 years and $1.5 billion to market this drug under the brand name eazIO. ..
You are in charge of making recommendations based on economic forecasts to upper management of your firm, which produces widgets, and employs 2,500 workers. What would you look for in terms of leading indicators (discuss at least three indicators), a..
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