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Suppose the real rate of growth of wages subject to Social Security taxes is expected to average 1% per year during the next 40 years. Assume that the Social Security tax rate remains constant, and prove that the average return on Social Security taxes paid into the Social Security trust fund will also be 1%. Why can workers with high incomes expect negative returns on their Social Security taxes during this period?
Determine which of the following theories of expectations holds that individuals usa all information available in forming expectations?
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
Illustrate what extent are these definitions of economics and happiness similar. To what extent are they different.
What is the contribution of the growth of total factor productivity growth (dA/A) to that growth? What is the contribution of a faster rate of capital growth compared to labor force growth α[dK/K - dL/L] to increases in Y/L?
Explain in words how and why the income sensitivity of the demand for real balances affect the slope of the LM curve. Think of the demand for real balances as L(r,Y)= eY-fr where e and f are positive constants.B) What are the effects of a large s..
Using the aggregate demand and supply model, draw an economy in a boom with equilibrium national income above full employment GDP.
Explain why the FOMC opted to include language about the specific level of unemployment it wants before it might consider possibly increasing the Federal Funds rate. What is the expected benefit, and what might be the cost?
What are the risks and opportunities of the strategies followed by Pepsi? of Coca Cola? 3.) How would you respond to Coca-Cola's change in sales policy? How would you ensure Pepsi's board that this response will allow you to remain competitive and..
A firm uses a single plan with costs C = 160 + 16Q + .1Q 2 and faces the price equation P = 96 - .4Q. The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units.
Problem on standard deviation
Illustrate what are economic influences which affect the organization in a negative way.
Calculate the mean income class for those individuals with private, employer sponsored insurance. Is this greater than or less than the mean income class for those with private, individually purchased insurance? Any thoughts regarding the compari..
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