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The central bank should never use monetary policy to combat business cycle fluctuations coming from changes in autonomous investment (i.e. it should keep the money supply constant) if it also wishes to keep longer term movements in the price level to a minimum. Is this claim true, false or uncertain? Explain by using words and a single IS/LM diagram and a single AS/AD diagram
Assume that the labor demand equation for a fictional country is Ld = 90 – 2w, where w is the wage per hour worked. Assume also that the labor supply equation for that country
Assume only one variable input, which is labor (L). Which one of the following is FALSE for a typically shaped short run production function? (TP=total product of labor, AP=av
Using the specific-factors model, elucidate why you might expect to see certain capital owners and labor groups arguing against expanding trade in a capital-abundant country
Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $130,000. T
A marine equipment manufacture is considering replacing its wired pendant controllers on its heavy-duty cranes with new portable infrared keypad controllers. The company expec
The model of monopolistic competition characterizes a city's market for plumbing services. Suppose that the market is initially in long-run equilibrium, and then demand for pl
For each of the next 7 years, he received total dividends of $50 per year. For the remaining period, he received total dividends of $100 per year. What rate of return did h
Provide optimal wage-bonus package, compute this employees' effort, expected payoff and employer's profit. Draw a game tree for employer-employee game in parts a-c.
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