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The steady-state rate of unemployment is U/L = s/(s+f). Suppose that the unemployment rate does not begin at this level. Show that the unemployment rate will evolve over time and reach this steady state. (Hint: Express the change in the number of unemployed as a function of s,f, and U. Then show that if unemployment is above the natural rate, unemployment falls, and if unemployment is below the natural rate, unemployment rises.)
Every day, Ivan buys 2 cups of coffee and a sandwich for lunch. The price of coffee is $2 per cup and the price of a sandwich is $5. Ivan’s choice of lunch maximizes his utility, and he spends only $9 on lunch. Compare Ivan’s marginal utility for cof..
Suppose you own a portfolio consisting of $250,000 of long-term U.S. government bonds. What is the least risky security you can think of? Explain. Would your portfolio be riskless? Explain.
Explain the essential distinctions among the stages-of-growth theory of development, the Structural change models of Lewis and Chenery.
Assume for this CheckPoint that purchasing a new home is a major decision requiring a substantial financial outlay where the wrong decision has long-term financial consequences.
Coffee prices in 1960 were .40 cents and are $1.65 in 2009. Income in 1960 was $10,000 and is $40,000 in 2009. Does this mean that society is worse off or better off in 2009 than in 1960? Under what conditions are consumers better off? Besides the ch..
While drinking coffee, you believe that the marginal benefit of drinking one more cup is greater than the marginal cost of that cup. You then conclude that:
david gets 3 per month as an allowance to spend any way he pleases. since he likes only peanut butter and jelly
Competition within our marketplace is heating up, and we need to quickly get on top of our processes to regain the confidence of our customers and makeBOLDFlash their first choice when purchasing.
Speculate about the behavior that could result from these transactions and propose at least two (2) strategies for dealing with them.
I have a production function Q=f(L,K)= 2L+4K. The cost of each unit of L labor is 10 and the cost of each unit of capital K is 18. Assume the gift boxes are currently selling for $4 each. Determine the profit-maximizing quantity Q for this company. A..
Some examples of tacit collusion include:
Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and, invariably, create employment possibilities.
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