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Suppose short-run output exceeds full potential output by 3 percent.
A. According to Okun's law, what is the effect on unemployment?
B. Assuming that inflationary expectations are constant, what is the effect on wages?
Compare and contrast inflation and deflation. What are some of the damaging effects that each has on an economy.
Find the Following: Average Product of Capital, Average Product of Labor, Marginal Product of Capital, and Marginal Product of Labor. Given: Q = 10 K^0.3 L^0.7.
What is the rate of inflation of the U.S. dollar is 5% and the rate of inflation of the Japanese yen is 2%. What is the percent change in the real $/Y exchange rate.
Risk and Return, Coefficient of Variation Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship.
how many pineapples will she consume? If her income increases to $120, how many grapefruits will she consume? Are grapefruits a normal or inferior good?
You are the manager of a monopoly and your demand and cost functions are given by P = 300 – 3Q and C(Q) = 1,500 + 2Q2, respectively. Furthermore, MR = 300 – 6Q and MC = 4Q. What price-quantity combination maximizes your firm’s profits?
The key condition for equilibrium to occur in a market is: A. the demand curve equals the supply curve. B. quantity demanded equals quantity supplied. C. price equals quantity. D. demand for one good equals demand for all other goods.
Both banks that each of their entire $20 million loan package will be written off as bad loans. Will any of the two banks survive this crisis? Explain carefully.
Why might a U.S. trade deficit be preferable to a U.S. trade surplRunning a trade deficit allows a country to consume more than it produces. Americans acquire more foreign assets under a trade deficit than they do under a trade surplus. Under a trade..
Consider an auction with 1,000 risk-neutral bidders. It is know that these bidders have affiliated values. Based on this information we know the expected revenues for the different auction types will be
Where does this short-run aggregate supply curve intersect the long-run aggregate supply curve that you drew? Just need an explanation of what it woudl look like?
Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..
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