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What is "natural " about the natural rate of unemployment? why might the natural rate of enemployment differ across countries? 4. Suppose a drought destroys farm crops and drives up the price of food. what is the effect on the short-run trade-off between inflation and unemployment? 5.suppose the federal reserve announced that it would pursue contractionary monetary policy to reduce the inflation rate. would the following conditions make the ensuing recession more or less severe? A) wage contracts have short durations B) there is little confidence in the fed's determination to reduce inflation. C) Expectations of inflation adjust quickly to actual inflation.
Using your knowledge of utility and consumer behavior and the data below, show exactly how you would spend your income, on which goods and why. Be sure to calculate the MU/P for good X and good y, and then proceed. (20 pts) Q MU x MU y 1 90 150 2 84 ..
Illustrate how much will they have accumulated principal plus interest when they reach 65 years old. What is the moral of this situation.
Illustrate what is the efficient price of water. Illustrate what are the quantities of water allocated to agricultural also industrial use.
Thorpe Mfg., Inc., is currently operating at only 88 percent of fixed asset capacity. Current sales are $320,000. Suppose fixed assets are $250,000 and sales are projected to grow to $357,000. How much (in dollars) in new fixed assets is required to ..
Farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savi..
Firms pay efficiency wages because these wages:
Clearly explain the factors to consider as your "fixed factor" and alternative short term and long-term decisions. Submit your analysis in a one to three page paper.
A perfectly competitive rm produces output q with capital K and labor L according to the production function: q = f(K; L) = 4K 1 4L 1 4 The price of labor is w = 4, and the price of capital is r = 4. Prove that this production function has decreasing..
We learn from Gorton that it is not possible to prove that had Lehman Brothers been bailed out by the government or the Federal Reserve the financial crisis of 2008 would not have occurred. This is an example of not being able to prove the “counterfa..
The first cost of a production machine is $75,000. The machine will generate net annual income of $13,275 during its useful life of 10 years. Determine the rate of return of on investment in this machine. Express the answer as an integer. For example..
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Find the long-run equilibrium in this market and determine the consume..
11.assume you are the director of design for a cell phone manufacturing company. you work closely with the new product
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