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Agree or disagree with each of the following statements and explain your answer.
a) The economy cannot be considered fully employed until measured unemployment is less than 1% of the labor force.
b) It is possible for an economy to operate for a time with an unemployment rate less that the "natural" unemployment rate. (Also known as NAIRU, the non-accelerating inflation rate of unemployment).
Given that he will consume $1000000 if uninsured and $0 worth of consumption if uninjured, the expected value (EV) of his consumption is how many dollars?
If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?
Which one is more effective comparing with the tools of fiscal policy?
Do the hold out values fall within the forecast 95% confidence limits?
A restaurant has three types of customers. A third of its customers, Type A, are willing to spend $5 on an appetizer but only $2 on a dessert. Another third, Type B, are willing to spend $3.50 on an appetizer and $3.50 on a dessert. Calculate the pro..
A company purchased some equipment at a very favorable price of $35,000. The equipment resulted in an annual net saving of $2000 per year during the 8 years it was used. At the end of 8 years, the equipment was sold for $45,000. Assuming interest at ..
Consider the following short-run production function: q = 5L2 - 1/3L3. Illustrate at what level of L do diminishing marginal returns begin. At what level of L do diminishing returns begin.
What are automatic fiscal stabilizers? How do these stabilizers stabilize real GDP in the face of AD and AS shocks? o What is the role of the simple multiplier [ 1/{1 – MPC(1 – t) – m}] in stabilization of the swings in real GDP? o How the slope of t..
List and explain the five features/characteristics of a perfectly competitive market. Is health care better in the United States? Why or why not? What indicators did you use to define “better”? Explain the break-even price and the shut-down rule. Giv..
Households deposit $5,000 in currency into the bank that is added to reserves. Illustrate what level of excess reserves does the bank now have.
Suppose that the production function for Hannah and Sam’s home remodeling business is Q = F(L, K) = 10L0.2K0.3. If the wage rate is $1,500 per week and the cost of renting a unit of capital is $1,000 per week, what is the least-cost input combination..
Illustrate what did he know about costing to the chain store representative was overlooking. Be sure to describe or chart the shape of Morita's costing.
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