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Using OECD Database, obtain annual data (from 1990 to 2019) on the inflation rate (CPI), the short-term interest rate, and the unemployment rate (15-64 age) for Spain. (Excel File must be submitted).
a. According to the AE curve and Okun's law, what is the relationship between the real interest rate and unemployment?
b. Using data from 1990 to 2019, plot the unemployment rate against the real interest rate, defined as the nominal rate minus inflation (Create a graph with the unemployment rate on one axis, the real interest rate on the other, and a point for each year). What relationship, if any, do you see?
Firm A has overhead of $1,000 a year and can produce 1,000 units at a cost of $1 per unit and units beyond that at a cost of $3 per unit. Firm B has no overhead and can produce any number of units at a cost of $2 per unit. Firm A has 3,000 customers,..
Let's assume you want to open one of the following new businesses. What form of business ownership would you choose for each business? Why?
When a negative externality is present, and a firm does not factor the additional social cost into its decisions, the firm is likely to produce a level of outpu
The value of marginal product of labor curve. As the price of land rises, the quantity supplied. The value to a firm of hiring another worker is the worker's value of marginal product. The value of marginal product equals the price of the good produc..
You are the manager of a firm that produces output in 2 plants. The demand function is P = 120 - 6Q where Q = Q1+Q2. MC associated with producing in 2 plants are MC1=2Q1 and MC2=4Q2. How much output should be produced in plant 1 in order to max profi..
Explain the difference between a positive and negative externality. In your analysis, make sure to provide an example of each type of externality. Why does the government need to get involved with externalities to bring about market efficiency? What ..
What is a voluntary export restraint, and why would a country seek to have an importing country agree to one? Is it more or less costly to enforce in comparison to a tariff or quota?
q1. suppose that people consume only three goods as shown in the table tennis balls golf balls bottle of gatorade2009
Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is -2. The marginal cost of producing the product is constant at $200, while average total cost at current production levels is $260. Determine..
Can the government correct market failures? More specifically, discuss the approach/es that the current Chinese government has taken to dampen decreasing prices in the Chinese stock market. (has it been effective?)
1. Matrix highlighting the claims/description or arguments of the 4 major classic theories of development
What is meant by the term "vicious cycle of poverty"? What are the general experiences of developing countries in escaping this cycle during the past decades?
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