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Question: 1) What does the term ‘Inflation' describe?
2) What constitutes a ‘business cycle'? (Through which phases does an economy pass in the course of one cycle? What do those terms describe?)
3) Briefly elaborate on why the unemployment rate is seen as an important indicator for the health of an economy.
4) Describe the economic situation in which Keynes's macroeconomic policy concepts were first gaining attraction.
5) Explain two examples for destabilizing effects of deflation.
The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to describe reality. One manifestation of this fact is Trefler's Case of Missing Trade. Explain what exactly is missing. In what sense is it missin..
Production function exhibit constant, increasing, or decreasing returns to scale?
“If the legal standard of care in a negligence rule is necessarily vague, the court should set it below the level of efficient precaution.” Explain the economic argument in favour of this proposition.
What are some costs of unemployment
explain why the optimal level of pollution is not zero. according to an epa study the health hazards of superfund sites
perfect competitionthe meat-processing industry in hungary is perfectly competitive and there are two types of firms
Property rights are protected in the current laws of states usually found in the form of a constitution or a bill of rights. The United States Constitution provides explicitly for the protection of private property in the Fifth Amendment and Fourteen..
Describe how the Economics principles of opportunity cost, factors of production, scarcity, and production possibilities interact to determine to what extent a nation's Gross National Product grows within a particular year
Variable costs have no impact on marginal costs in short run and marginal product is the change in revenue associated with the selling of one more unit of output.
Develop a one year monthly or weekly forecast or a two year quarterly forecast (for the hold out period) using the time series decomposition model you evaluated in c) above.
Catching illegal parkers is expensive. Exactly how often do you have to catch illegal parkers, before they will buy the $63 parking permit instead? (Hint: Set EU legal = EU illegal and solve for p, the probability).
When price of coke rises from $5 to $7, quantities demanded for coke falls from 1000 to 800, and quantities demanded for pepsi rises from 300-400. Calculate the cross elasticity of demand, using the mid-point approach.
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