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Suppose that the rate of job separation is 2% and the job-finding rate is 18%.
a. What is the natural rate of unemployment?
b. If the job-finding rate doubles, what is the new natural rate of unemployment?
c. Return to the original scenario. If the rate of job separation is cut in half, what is the new natural rate of unemployment?
d. Which has more impact: a doubling of the jobfinding rate or a halving of the job-separation rate? Does your result have any implications for government policy?
Describe how the market for corn would be influenced if ethanol, a corn derivative was used to fuel cars in US. How would market be influenced if a new technology caused corn farming to be more efficient?
Suppose a decrease in consumers' income causes a decrease in the demand for chicken and an increase i the demand for potatoes Which good if inferior and which is normal How will the equilibrium price and quantity change for each good
Entitlement programs affect the economy in many ways, yet they are considered by many as not being managed efficiently. Explain how you would improve some of these programs to ensure their effectiveness and ease of management.
Which product experiences a larger change in price and which product experiences a larger change in quantity
State whether you agree or disagree with the following statement and explain why: a. When the real economy expands (Y rises), the demand for money expands. As a result households hold more cash and the supply of money expands. b) Inflation a rise i..
The value of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that, Suppose that the current market value is below the market clearing level.
Last week a there was a general strike of labour union demanding increase in their salaries.You are requested to investigate from a sociological point of view
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $4, $5. Suppose you have $6.5 at 1% and can borrow at 8%. What is the incremental cost of funds on asset B?
Let us assume you and ten of your friends are going to open and invest in a business. You do not want to pay double taxation on the profits. You want a type of ownership where profits must be distributed based on how much each person has invested ..
If the jeans sell for $35 a pair and the competitive market wage is $250 per week. how many workers should stone hire? how may pairs of jeans will the company produce each week
It is often said that a good theory is one that can be refuted by an empirical, data-oriented study. Explain why a theory that cannot be evaluated empirically is not a good theory.
Do protectionist policies benefit producers, consumers, workers, or the government? Explain.b) Explain how the "Buy American" theme hurts Americans. a) Identify the four major tools of monetary policy.
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