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1. In the DMP model, what are the effects of a decrease in matching efficiency.
2. What explains the observed Beveridge relation from 2000 to 2012?
3. What is the basic market failure in Keynesian economics?
4. What explains aggregate fluctuations in the Keynesian DMP model?
Suppose the own price elasticity of market demand for retail gasoline is -0.8, the Rothschild index is 0.7, and a typical gasoline retailer enjoys sales of $1,900,000 annually. What is the price elasticity of demand for a representative gasoline r..
Political business cycle: Do economic events affect presidential elections? To test this so-called political business cycle theory, Gary 5rnith20 obtained the following regression results based on the U.S. presidential elections for the four yearl..
Compare the present value of Marian's earnings as a librarian to the present value of Marian's earnings as a florist. Is the difference large enough to justify spending $30,000?
(a) Calculate the equilibrium price and quantity of coffee-makers. (b) Draw consumer surplus and calculate its exact value. (c) Draw producer surplus and calculate its exact value. Now assume that Home opens up to trade.
Discuss the potential role of each of the factors
(More difficult) In the economy considered in Test Yourself Question 3, suppose the government, seeing that it has not wiped out the deficit, keeps cutting G until it succeeds in balancing the budget. What level of GDP will then prevail?
the general price inflation in our economy, the purchasing power of the dollar shrinks with the passage of time. If the average general inflation rate is expected to be 7% per year for the foreseeable future, how many years will it take for the do..
Under what conditions might the removal of all tariffs and other impediments to trade work to the best advantage of developing countries? Explain.
The market shares below are hypothetical and should not be cited in any paper you write in a future business class. General Motors = 24% Toyota = 20% Ford = 16% Honda = 12% Chrysler = 10% BMW = 7%
Some Japanese electronics companies claim that Chinese-produced TVs are destroying Japan domestic TV manufacturing capability and that the trade is unfair because Chinese wage rates are under a tenth of those paid in Japan. What would be your advi..
Fin the this combination using the information below and given that the prices of labor and capita are $1 and $3 pert unit repectively. Q= 0 1 2 3 4 5 6 7 8 TPI=0 11 20 28 35 41 45 46 46.5
Remembering that the change in the capital stock is investment less depreciation, use a calculator or a computer spreadsheet to show how the capital stock per worker will evolve over time in both countries. calculate income per worker and consumpti..
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