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Write down a household's budget constrain if there are four assets in the economy: money, (risk-free) physical capital, (risk-free) corporate and government bonds. What reasonable assumptions we can make about the return on the bonds and capital? What changes if corporate bonds and physical capital are risky investments?
an economy consists of two regions the north and the south. the labor market is initially in an economy-wide
Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand. Explain what the Fed should do if it wants to stabilize aggregate demand.
Compute the marginal cost in the given case. Illustrate what is the marginal cost with 8 workers to two decimal places.
Calculate the labor rate also efficiency variances for the month. Was paying workers the actual wage rather than the standard wage an efficient strategy for Loring.
Who benefits from a tariff or quota. Illustrate what are the positives and negatives of protectionist trade policies on the federal government's part. Which policy is best right now.
What is the effect of an increase in the quantity of money What is the difference between real variables and nominal variables Are these variables affected by the quantity of money If so, how
A scientist wants to determine the half-life of a certain radioactive substance-Based on the data, what is the half-life?
Show your budget constraint between labor and wages, and show your optimum point.b. Suppose that the tax law is changed so that all wages are subject to a 25% tax. Do you now work more or less than 10 hours? Does the government collect more or les..
If a corporate bond paid 9% interest, and you are in the 28% income tax bracket, what rate would you have to earn on a general obligation municipal bond of equivalent risk and maturity in order to be equally well off. Given that municipal bonds ar..
In which direction would international investment flow in response to these real interest rates. Illustrate what impact would these investment flows have on the dollar exchange value.
a)A cost minimizing firm's production is given by Q=L^(1/2)K^(1/2). Suppose the desired output is Q=10. Let w=12 and r=4. What is the firms cost minimizing combination of K and L? What is the total cost of producing output? b) Suppose the firm wis..
Illustrate the price elasticity of demand at the equilibrium price and quantity.What is the price elasticity of supply at the equilibrium price and quantity.
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