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What is the Phillips curve? Understand why positive unexpected inflation is associated with a negative output gap and vice-versa. Understand why combining the Phillips Curve with adaptive expectations of inflation means that Y above Y* will mean ever-increasing inflation and Y below Y* will mean ever-decreasing inflation.
For a normal good, the income and substitution effects
Is the output produced sufficient to cover the factors of production when production is under: i) constant returns to scale (CRTS), ii) increasing returns to scale (IRTS) and iii) decreasing returns to scale (DRTS)?
What can we say about the price elasticity of demand for nicotine products (such as cigarettes, pipes, tobacco) in the group of nicotine addicted users, versus the group of "social smokers"? Can we say whose demand is likely to be more elastic? Why?
A man is planning to retire in 20 years. Money can be deposited at 8%, compounded monthly.It is estimated that the future general inflation rate will be 3% compounded annually. What deposit must be made each month until the man retires so that he can..
Consider the scenario in which the Fed is implementing a contractionary monetary policy aimed at alleviating inflationary pressures.In this regard please provide an answer to the questions listed below. What would happen with the short run aggregate ..
Analyze the link between a firm’s production process and its total costs. What are the different types of costs a firm faces in the short run and long run. What are the major differences in perfectly competitive firm and monopoly. List and explain at..
The unemployment rate will fall if potential output growth is:
Due to limited borrowing options, the government may ask the central bank to print money. We also learned that the real seinorage revenue of the government depends on inflation and real money holding of the public, that is R= \prodM/P?. Explain the c..
What is the difference between forward resolution and reverse resolution? When is it better to use reverse resolution?
Write a paper showing your understanding of work in modern America. Included in this paper must be an analysis of positive and negative aspects of our relatively new service/knowledge based economy and our place in the global economy. You must als..
A decrease in labor productivity and the real wage could be caused by:
In the real business cycle model, suppose that government spending increases temporarily (i.e., Gt increases but Gt+1 does not). Determine the equilibrium effects of this using the diagrams of labor market equilibrium and goods market equilibrium.
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