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Suppose the economy has a natural rate of unemployment of 5%.
a. Suppose short-run output over the next four years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we expect to see in this economy?
b. Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) in this economy?
Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The following production possibilities schedules describe in their potential output in tons per years. Do not graph or illustrate - only provide numerica..
Maintenance occurs every month. The cost of maintenance starts at $2250 and it will grow by $20 each time the facility is maintained. Find the value today of the maintenance costs for the next ten years if Black Cat Blades Ltd.'s
Robertson Inc. wishes to set aside lump sum money to withdraw from and invest in automating parts of its business over the next 5 years. This money is expected to earn compound interest at the rate of 10% per year.
1. suppose a local food retailer firm has the following cost function that depends on the daily sales of two goods soft
Alternitive A: $2,500 initial cost, 10 year economiclife, $500 salvage, $4,500 per year O & M. Buy a new oneevery 10 years Alternitive B: $3,500 initial cost, 20 year economiclife, $500 salvage, $4,000 per year O&M. Buy a new oneevery 20 years.
Research suggests that taxing pizza and soda would reduce the incidence of obesity in the U.S.A. Suppose you were required to choose between a price ceiling and a floor price to achieve the same result.
A bank recently announced an "instant cash" plan for holders ofits bank credit cards. A cardholder may receive cash from thebank up to a preset limit (about $500). There is a specialcharge of 4% made at the time the "instant cash" is sent
In round numbers, real output doubled two times in the 40 years between 1950 and 1990, so it doubled every 20 years. This means that real output grew at a rate z that solves the equation 20 = 70 / z.Over this 40-year period, what is the average ann..
Real Disposable Income Planned Real Consumption 0 3,000 2,000 4,400 4,000 5,800 6,000 7,200 8,000 8,600 10,000 10,000 12,000 11,400 14,000 12,800 Refer to Table 12.1. The table gives the combinations of income and consumption.
a monopolist has marginal costs MC(Q)=2Q where Q is the total output (thus MC should be rewritten MC(q)=2(q1 + q2). The monopolis can sell the output on two seperate markets, which are protected from resale of goods.
The daily production function of a lake is TP=30*F-F^2 (where TP=total daily harvest and F=number of fishermen per day). Suppose each potential sport fisherman on the lake has a daily opportunity cost of $20 and that each fish caught is valued at ..
What is the profit-maximizing price and output level. Solve this algebraically for equilibrium P and Q and alos plat the MC, D and MR curves. b. What profit do you expect that the firm will make in the first year? c. Do you expect this profit leve..
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