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Describe the relationship between unemployment and real and nominal wages. Which is more important and why? What effects would either an increase or decrease in unemployment have on wages?
Suppose you are appointed to chair the Federal Reserve. Your twin goals are to maintain low inflation and to stabilize economic activity- that is, to keep output at potential. Why are these appropriate goals for monetary policy?
This assignment focuses on the comparison of perfect competition and monopoly in terms of efficiency and fairness. To complete this assignment you must complete all of the following questions. Microeconomic Problem
An economy is facing the inflationary gap shown in the accompanying diagram. To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real..
Suppose that the return on domestic bonds held by foreigners in country i are subsidized at the rate s and that returns on domestic bonds held by residents of country j are taxed at the rate.
Customers to Live Theaters, Inc. can be divided into two groups: seniors and everyone else. The inverse demand curves for each of the two groups are given below. The marginal cost (which equals the average variable cost) of serving an additional p..
Choose a United States based firm with global operations and discuss the following questions, Discuss the company's activities outside of the U.S.
Why is it important for managers to understand the mechanics of supply and demand both in the short run and in the long run What are some examples of companies whose business was either helped or hurt by changes in supply or demand in the markets
Always Round Tire has a production function of Q = 300 L.75 K.5. In the short run, if L = 250 and K = 25, what happens to the output of tires if L jumps to 300 and then 350. What law does this illustrate?
The price of capital, labor and materials are r, w, and m respectively. (1) In the short run, the amount of capital is fixed at k=k0. What are the conditional demand functions for labor and materials in the short run? (2) what is the short run total ..
How do markets determine the payments to the various factors of production? How do markets determine the distribution of income?
What is meant when a monopoly firm is described as a price maker? How is a price maker different from a price taker? Is a monopoly ever a price taker?
Calculate both Macaulay and modified durations of the 8-year, 8.5% coupon bond given a flat yield curve at 10% and explain why zero coupon bonds have a higher Macaulay Duration than coupon paying bonds of the same return.
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