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Suppose that in a particular month roughly 8 million people in the United States were seeking jobs but had not found them. Suppose that 2 million of these people give up their searches in the following month and stopped looking for work. What will happen to the unemployment rate, all other things unchanged? It will rise. It will fall. It will be unaffected, because none of these people is working. Not enough information is provided to determine what happens to the unemployment rate.
Consider the monetary intertemporal model with investment. Analyze a temporary, positive TFP (z) shock and a permanent increase in Ms, respectively. How do the implications di?er? What assumptions on the economic behavior of households and ?rms do th..
Compare and contrast free and fair trade. After reading the case study “Fair Trade Coffee: What are the similarities and differences in free versus fair trade arrangements? How are these reflected in the actual prices of coffee? Are fair trade princ..
What would you expect to happen to the domestic money supply as R and Y both increase along a stable BB curve? Explain in intuitive terms what forces would tend to bring about such a change in the money supply.
Assume that demand for a commodity is represented by the equation P = 10 – 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium conditio..
What is the highest possible total revenue that the team can hope to collect
The production function is Q = L^0.25*K^0.25 and the respective unit input prices for L and K are w=4 and r=9. Derive the long-run least cost as a function of Q, and derive the marginal cost and average cost to characterize the shape of the total ..
Assume that major wheat producers in the world increased their land under wheat by 30 percent. Graphically show the effect of increase in land under wheat on the grain market.
Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the item?
In a two firm market, let the total cost of producing a product be 2Qi, the inverse market demand be given by the function P = 20 - Q and the market quantity be equal to Q = Q1+Q2. Assume firms compete in quantities, what is the quantity for firm 1 t..
Identify some of the costs (pecuniary and non pecuniary) associated with the antitrust behavior (firms having power in the market). Additionally, note the specific antitrust act (Sherman Act, Clayton Act, etc.) under which the violation was investiga..
Illustrate which of the following is an example of the legal-regulatory environment surrounding advertising also promotional activities of businesses.
Derive the simple bid-rent function for a model with only firms. Illustrate what factors can cause the city to grow larger.
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