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We have discussed three types of unemployment. Cyclical unemployment which is the consequence of transitory reductions in demand for certain goods and services associated with economic contractions. Frictional unemployment occurs during the transition of workers from one job to the next. These unemployment spells are fairly short. And finally, structural unemployment is associated with the secular decline of certain sectors or industries. In this case, workers become unemployed because their set of skills is no longer valued by potential employers.
a) Provide your own example of each type of unemployment.
b) Describe briefly the different policy implications of each type of unemployment.
If the Fed lowers the reserve requirement to 5 percent and at the same time buys $10 billion worth of bonds, then by how much does the money supply change?
1. How long does it take (roughly) for monetary policy to have an effect on real GDP?
A local newspaper headline blared, “Bo Smith Signed for $30 Million.” A reading of the article revealed that on April 1, 2005, Bo Smith, the former record-breaking running back from Football University
irvine aerospace of santa ana california was awarded a 5 year contract to develop an advanced space capsule airbag
In the case of logarithmic utility, Cobb-Douglas production, and delta=1, what is the equation for kt+1 as a function of kt? Comment on whether you find this surprising.
Gaston Piston Corporation has yearly sales of $50,735,000 and maintains an average inventory level of $15,012,000. The average accounts receivable balance outstanding is $10,008,000.
Elucidate the interpretation of the coefficient b. Do the demand functions satisfy the relevant homogeneity conditions.
Compute the change in total income which is P times Q moving
Suppose capital is steady, with three machines and MPPK/MRCK = 30, determine the least cost input combo of labor and capital? How much output is produced?
Virginia gives her 14-year-old grandson, Tommy, $10,000 in common stock. One month later, a $100 dividend is paid to Tommy on the stock. How much income is taxed to
Suppose the demand for a product is given by P = 30 – 3Q. Also, the supply is given by P = 10 + Q.
A suggested approach is to begin with a workstation running a web browser and trace a connection to a public web server (i.e. facebook; eBay; etc).
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