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Suppose that, over a time period lasting 3 years, the nominal wage rises by 5% per year. Over the same time period, the annual rate of inflation is 3%. What is the exact total percentage increase in the real wage over this entire time period.
Use demand and supply diagrams to elucidate what happened in anchovy,soybean, and cattle markets. Indicate which curves shifted in each instance and show the effects on the equilibrium price and quantity in each market.
Describe the long-term trends in inequality in the United States using the available measures. What are possible explanations for these long-term trends.
What is the point price elasticity of demand at a price of $70? What is the point price elasticity of demand at a price of $60?
Let D be an n × n matrix for a Leontief input-output model. We will say this models an economy with n industries I1, I2, · · · , In. Let x be an n × 1 vector. 1. Consider two possible conditions: (R) The entries of row k sum to 1: Sigma from j=1 to n..
Suppose a firm sells a good in 2 markets, each market is characterized by their own respective demand curve. Calculate the profit maximizing outputs and prices in each market assuming the firm can price discriminate. Calculate the own price elasticit..
How does trade cause a gain for each nation? Start with the case of no trade and work up to the model of trade between nations. Use the case of Increasing Costs. Comment briefly on the case for taste differences.
Roberto is a senior citizen who consumes food and healthcare. When he retired in 2002, he consumed 90 meals and 3 medical checkups per month. Suppose in 2002 that the price of a meal was $10 and the price of a medical checkup was $64. Calculate a Las..
Suppose two firms supply the market for computer chips and their products are perfect substitutes. The firms choose what quantity to produce independently, i.e. compete as Cournot. What is the one-period Cournot-Nash equilibrium output and price? Wha..
What are design patterns? Why do we use them?
An engineer borrows $17,500 to make some repairs in his home. He must repay $378.56 a month for 5 years. What is the nominal annual interest rate Based upon continuos componding?
Consider the Solow growth model with the production function Y=F(K,L)=KL/K+L . a. Find the production function in terms of capital per labor. b. What is Solow’s equation for the evolution of the capital/labor ratio? c. If capital depreciation rate is..
Find three print examples of the kind of promotional methods that constitute ambush or experiential marketing. Evaluate each example in terms of effectiveness.
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