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Assume there is a lapse from full employment. Compare the solution offered by the classical economists with that offered by J.M. Keynes. How do these solutions differ from those offered by supply siders and monetarists? You might also mention the views offered by Keynesians.
Kaufmann's offers only an hourly wage. Do you expect Kaufmann's hourly wage to be higher or lower than Farleigh's.
If it makes sense that one type of labor can substitute for another in production, how can capital, a physical object, substitute for labor, a human being?
Howard Bowen is a large-scale cotton grower. The land as well as machinery he owns has a current market value of $4 million.
At an interest rate of 8%, determine the capitalized cost of the facility, assuming that it will be used for an indefinite period.
Illustrate now have to lend out how much does this bank if it decides to hold only required reserves.
Illustrate what is the producer's profit-maximizing(loss-minimizing) output level. Illustrate what are the firm's economic profits.
Illustrate what does it imply about actual price level relative to expected price level. Illustrate what must happen to real and nominal wages in order to close a contractionary gap.
Assume that Erin now has preferences such that she prefers the cash gift. Using a separate graph from part (a), graph Erin's optimal choice before and after gift.
Illustrate that the tax be acceptable in spite of the deadweight loss. What tax revenue will be generated.
Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates
If we know that expansionary monetary policy cannot create real economic growth in the long-run, why would it ever be used in the short-run?
what changes should they make in government spending or taxes ? what changes should they make if they decide a contractionary fiscal policy is necessary?
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