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Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume that v=2 and that the inflation rate last period was 2%. Assume the natural rate of unemployment is 5.5%.
a. The Sequester is probably a bad idea. Use the IS-MP model to explain what should happen to the economy if the government cuts spending by 1 percentage point of potential GDP.
You have opened your own word-processingservice. You bought a personal computer, and paid $5,000 for it.However, due to the cost changes in the computer industry, thecurrent price of an equivalent machine is $2,500.
About two-thirds of all households now purchase two or more bundled telecommunications services from the same company (e.g., local telephone, long distance telephone, video, cell phone, Internet, etc.). Explain why consumers frequently prefer bundled..
Discuss the implications of the outsourcing of labor for the nation as a whole, and see if you can find an example to cite within the region, where a company or factory has shifted production to Asia or elsewhere overseas.
Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why Pigovian taxes, such as gasoline tax, are unlike most other taxes?
Discuss the potential conflicts that might occur between that of IT and Operations Management. How might such issues be addressed and resolved.
A manufacturer plans to open a new plant. The new plant will cost $4,000,000 to build and make ready for production. Company management believes that the plant will produce a net profit of $150,000 in the first year and that profit will increase 5% p..
In "Final Jeopardy" (pp. 234-242), Stephen Baker expresses an interesting look at the way technology, especially in terms of machines, could dramatically change the relationship between mankind and technology—not just helping us to locate information..
If Latanya plans to use the phone for one hour to talk with only one person, with whom would she rather speak.
Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate and profit from the interest-rate differential.
Elucidate how much will each worker have to pay per unit to provide the socially efficient quantity.
The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?
q1. if michael has 48 to spend on cola and pretzels what combination should he purchase in order to maximize his
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