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a) Suppose that the matching function is given by: M = em(Q, A) = eQ^(0.7)A^(0.3) Express pc and pf as functions of e and labor market tightness j.
b) Suppose that z = 1, b = 0.4, e = 0.9 and k = 0.24. Suppose that w = 0.75 Find the unemployment rate in the economy.
c) Suppose that e falls to 0.8. Suppose that w is unchanged. What happened to the unemployment rate, the labor force participation rate and output?
d) Suppose that by law the wage is increased (while keeping all the parameters from part (c) unchanged). What is your prediction about the unemployment and participation rate?
in 2012 a baseball player signed a contract reported to be worth 89.8 million. the contract was to be paid as 13.2
How the economy works and why the idea of limited resources is such a major concern in today's economy
using margin. bill campbell invested 4000 and borrowed 4000 to purchase shares in wal-mart. at the time of investment
Which were the main causes of the Great Depression and why did the Great Depression last so long?
Economists in the ministry of agriculture in kwale count
an increase in the excise tax on alcohol?awill have no effect on alcohol consumptionbwill generate minimal tax revenues
Presume that the Japanese economy is in equilibrium according to the Keynesian expenditure model. Now presume that the Tokyo Stock Exchange (as gauged by the Nikkei 225 index) experiences a 22 percent increase in value in the next three months.
At a meeting with the manager, the accountant suggested raising the price of the hamburgers to $4.00 to improve the profit margin (P – AC). The manager noted that this would lead to a decline in sales, which would increase average cost even further.
Consider a city that has created a monopoly market for package deliveries. Suppose market demand for annual deliveries in millions is Q = 18 – 1.0P, each delivery truck’s weekly cost is C = 1800 + 3 q and each truck can make 280 deliveries per week.
Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal, petrol, and diesel.
consider the following version of the model of incentive pay with endogenous monitoringin a principal-agent
Discuss the concepts of price transparency and information asymmetry and they apply to the diamond industry as a result of the entry of BlueNile. Name another industry where the Internet has had a similar impact.
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