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Suppose the economy has a natural rate of unemployment of 6%
a) Suppose short-run output over the next 4 years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we wxpect to see in this economy?
b) Consider another economy in which the unemployment rate over the next 3 years is 6%, 7%, and then 4%. According to Okun's law, what are the levels of short-run output Y in this economy?
Under very high rates of inflation, why would people prefer to use a barter system to buy goods, rather than use paper money.
Illustrate what price should the owners of blue skies set for engines in order to avoid this problem and maximize overall profits.
In 2000, the SEC proposed new regulations that would limit consulting work by accounting firms. This proposal was not passed by Congress. Do you think the legislators were trying to act in the public interest when they failed to pass this proposa..
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
The problem of double coincidence of wants is associated with:
If a case is reversed and remanded, it:
A perfectly competitive firm will shut down immediately when the market price falls below
Small minimum efficient scale in assembly operations indicate high or low entry threat in the PC business
q. suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if they are each
If Cameron is a risk neutral inventor, which option will be selected? d. How would your answer change if Cameron is a risk adverse investor?
q1. suppose a firm in each of the two markets listed below were to increase its price by 30 percent. in which pair
q.a company is considering buying a new machine. two different models are available on the market.marr is 10.data
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