Reference no: EM13998639
Assume that the job separation rate s is 0.01 (1%) per month and that the job finding rate f is 0.2 (20%) per month.
Assume that the labor force today (period t = 0) is 100 million.
(a) What is the steady state unemployment rate for this economy?
(b) Given that L = 100 million, what is the steady state number of employed E and unemployed U today in period t = 0?
(c) Assume U.S. immigration policy changed tomorrow (period t = 1) such that we allowed more people to enter the country and L increased to 110 million from its inital value of 100 million. Assume that these new entrants would be unemployed first and then find jobs at the job finding rate f .That is, at time t = 1, the number of unemployed is U1 =U+10 million, and the number of employed equals E1 = E. Create a table (maybe in Excel) that shows how Et , Ut , and Ut=L evolve over time, given s = 0:01 and f = 0:2, starting at t = 1 and ending when the unemployment rate reaches its steady state U=L rounded to the nearest thousandth (tenth of a percent).
(d) In the table from the previous scenario, how many periods does it take for the unemployment rate to reach its steady state level rounded to the nearest thousandth (tenth of a percent)?
|
Three alternatives for investing these funds
: The Rule of 70 applies in any growth rate application. Let’s say you have $1000 in savings and you have three alternatives for investing these funds.
|
|
What is the net present value of the project
: 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost the economy $300 billion in medical expenses. Your firm has spent $260 million to date in working on a cure. What is the net present valu..
|
|
Demand equation and supply equation
: Please consider a product that has five different price points per unit: $100, $200, $300, $400, and $500 find out the corresponding Quantity Demanded (Qd) and Quantity Supplied (Qs) from the following two equations: Demand equation, Supply equation.
|
|
Each case from recent market experience or from test markets
: Compute elasticities of demand and explain briefly for each the relevance of this information in decision-making by the firm. The data has been generated in each case from recent market experience or from test markets.
|
|
What is the steady state unemployment rate for this economy
: Assume that the job separation rate s is 0.01 (1%) per month and that the job finding rate f is 0.2 (20%) per month. Assume that the labor force today (period t = 0) is 100 million. What is the steady state unemployment rate for this economy? In the ..
|
|
Use the principles of supply and demand
: Use the principles of supply and demand to address a predetermined goal (set by the student). Be clear on what the current market indicates and why and what your future goal is. We will probably revisit some of your choices in future modules.
|
|
Suppose you are faced with demand
: Suppose you are faced with demand P=10-.2Q and your current production (supply) is 10. What price should you charge to sell all your product? (Show your work)
|
|
About the current daily sales
: A coffee retailer (Bob’s) developed the following daily demand curve for coffee for Your Town, NY. Where P is the price of Bob’s coffee, Pc is the price of Starbuck’s, and M is income in YourTown. Currently Bob’s and Starbuck’s Coffee are priced at $..
|
|
Generic demand curve
: Suppose you have the generic demand curve. Calculate demand using the current market conditions. (Show your work) Is P1 a substitute or complement? (Why) Is P2 a substitute or complement? (Why) Is this product normal it inferior to Income? (Why)
|