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Part II a. Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market. b. Suppose you were interested in increasing technological progress in your country. Suggest two (2) ways to do this.
Structuring problems of risk in mining and transporation
Price higher in monopoly market. Bigger quantity in perfect competition. How can a firm gain by reducing competition.
Write down an individual’s optimization problem regarding consumption of good and bad behaviors using the Bellman equation representation of lifetime utility (as we did in class). Be sure to include the budget and time constraints and any constructs ..
Assume that two firms sell differentiated products and face the following demand curves: q1 = 15 − p1 + 0.5 p2 and q2= 15 − p2 + 0.5p1 (assume marginal cost is zero) Derive the best response function for each firm. Do these indicate that prices are s..
Explain how “Black Markets” impact economic actives: Please explain in detail and use a supply and demand graph for your examples
Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of an expansionary Fiscal Policy and Monetary Policy on the overall level of economic activity. Include the conditions in whi..
What is consumer surplus?
What is the externality associated with an individual driving on a congested highway? how do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..
Sticky Stuff produes cases of taffy in a monopolistically competitive market. The inverse demand curve for its product is P = 50 - Q, Where Q is in thousands of cases per year and P is dollars per case.
q1. elucidate how a person who refuses an offer of employment in order to keep looking for a better job is counted by
A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. a) If the discount rate is 14 percent compounded monthly, what is the value of this annuity five years from now? If th..
What variables to include in x. What functional form to use; should x include higher order, interaction terms of variables.
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