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Suppose a worker receives a wage of $20 per hour. Compute the real wage (money wage deflated by the price index) corresponding to each of the following possible price levels: 85, 95, 100, 110, 120. What do you notice about the relationship between the real wage and the price level? Relate your finding to the slope of the aggregate supply curve.
Len's body board factory pays $60 a day for equipment and $200 a day to each student it hires. Table 1 sets out Len's total product schedule.
Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:
Assume you are a city planner working on a new industrial park and contemplating the use of an industrial ecosystem. Discuss the major advantages and disadvantages of an industrial ecosystem that you would consider in making your decision.
If market demand is given by the functionQ=1000?P, where P denotes price, how many firms will operate in this long-run equilibrium?c) Suppose the government grants a lump-sum subsidy to each firm that manufactures the product. If this lump-sum su..
The second is that the economy has been in a cyclical boom and unemployment has fallen well below the natural rate. How might you distinguish between these two hypotheses? Do they have different implications for inflation?
Collect data on the tuition rates of your own college in the last twenty years and compare that increase to the overall rate of inflation using the CPI. What do you observe? Can you suggest some productivityenhancing measures?
Assume the supply curve for DVDs is P=2Q and demand is P=42-Q. Suppose state government levies a tax of $9 on each DVD sold, collected from the seller. What quantity of DVDs will be sold in equilibrium
illustrates the demand and supply schedules for television sets in venezuela a small nation that is unable to affect
The construction of a dam will cost $1,000 at time 0, $500 in year 1, and $500 in year 2. It will be completed at the end of year 2. From year 3, maintenance costs will be $100 per year through year 10. From years 11 on, maintenance costs will be ..
Suppose now that the cost of capital in the previous question rises to $3 per unit. Graph the new long-run average cost curve, and compare its position with the curve in that question.
In a more typical situation, the government does not know the cost of pollution reduction for each firm. If the government decides to reach its overall goal by imposing uniform reductions on the firms, calculate the reduction made by each firm,
Suppose that farm workers are responsible for onefourth of the production cost of food. What are the implications of immigration for the cost of producing food and its price?
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