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What is price-wage rigidity?
Consider a manufacturing firm operating a given scale of plantcontaining some assembly equipment. Assume that the only input that the firm can change the amount of that can be used during the time period considered is labor (L). Over that range of la..
Why do extended unemployment benefits lead to longer periods of unemployment? Why does extended benefits create disincentives for work?
Answer the questions in straight to the point short answers. please answer them as they are numbered. shouldn't be more than 500 words
Suppose the economy is in a long-run equilibrium, as shown in the following graph. Now suppose that a stock market crash causes aggregate demand to fall. Use your diagram to show what happens to output and the price level in the short run.
Firms 1 and 2 produce horizontally differentiated products. The demand for firm 1's product is given by the equation,
In 1990, the GDP of Canada was $550 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 88 U.S. cents.
Using the value of MPC = 0.75, and knowing the difference between the values of expenditure multiplier and the tax multiplier), Estimate the increased level equilibrium aggregate output (RGDP) with a total tax rebate (reduction) $400 billion.
A firm has installed a manufacturing line for packaging materials. The firm plans to produce 50 tons of packing peanuts at $5000 per ton annually for 5 years
The risk-free rate of return is 3.5 percent. Illustrate what is the current value of one call option on this stock if the exercise price is $40.
Walmart has been said to have excessive power in its relationship with communities. How is its manifestation of power with employees similar to or different.
Why do workers in developing countries have lower productivity and lower wages?
Interpret the R2. (b) Interpret the coefficient on All-Star.
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