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Suppose that at zootopia all workers sign annual wage contracts each year on January 1. No matter what happens to prices of final goods and services during the year, all workers earn the wage specified in their annual contract. This year, prices of final goods and services fall unexpectedly after the contracts are signed. Answer the following questions using a diagram and assume that the economy starts at potential output.
a. In the short run, how will the quantity of aggregate output supplied respond to the fall in prices
b. What will happen when firms and workers renegotiate their wages
If interest rates in the United States is 5% per year and in Australia it is 8%, and inflation rate in Australia is 6%, then using the Fisher effect
Between January and December 1994, U.S. unemployment fell from 6.7 percent to 5.4 percent of the labor force. The Federal Reserve, the nation's monetary-policymaking authority, took active measures beginning in February 1994 to raise short-term inter..
Determine what you would have to do to get your business into a state that would make it funding worthy and explain why.
Reflect on your performance as a leader and a follower. What do you know about these different roles now that you didn't before? How might you improve your own actions to be a better team mate?
What is the fiscal health of the United States and what is the fiscal health of one other country?
Write a pseudocode algorithm that will input the customer's age and number of months, and print the monthly rate and total amount to be charged. Use structured pseudocode as demonstrated in the lectures for code, ensure that all variables are decl..
When the stock of money increases too rapidly, then the economy will likely experience. The money supply in the united states is backed by. Money that is backed by something tangible like gold
Frank was willing to contribute $40 this year to his local public television station. However, after learning that the television station had already met its goal of raising $400,000, he decided not to contribute because he knew he could watch public..
Anyone who has ever eaten crabs from the Chesapeake Bay knows that the quality of crab cakes declines with the square of the distance from the Bay. Thus, one should never order crab cakes at Red Lobster, for example. Unfortunately, crabs have been ov..
Impatient individuals with low attention span usually have. Is it fair and ethical for a minor to take advantage of the protection accorded by the law to breach a contract made with a person who believed the minor to have reached the age of Majority?
Talk about six economies of worth, or sets of values, that we prioritize differently. Although we may not always prioritize our values the same way in different situations, I'd like to think about how you would rank these six economies of worth for y..
Given that the US economy production function (to calculate current GDP and potential GDP) is : GDP = Y= F(K,L,N) = 0.04K+0.03L+0.03N. The current GDP is produced with K=200, L=100, and N=100, the full employment GDP (potential GDP) can be potentiall..
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