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In the monetary intertemporal model, suppose that the money supply is fixed for all time. Determine the effects of a decrease in the capital stock, brought about by a war or natural disaster, on current equilibrium output, employment, the real wage, the real interest rate, the nominal interest rate, and the price level. Explain your results.
Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2007, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per ..
If the government imposes a usury law and says that car loans cannot exceed 3 percent per year, how big will the monthly shortage (or excess demand) for car loans be What if the usury limit is raised to 7 percent per year
The one-year real rate of interest is currently estimated to be 3 percent. The current annual rate of inflation is 2 percent, and market forecasts expect the annual rate of inflation to be 5 percent. Approximately, what is the current one-year nom..
Obtain the three CPS wage datasets, do the following for each of the three datasets, at at the end compare your results. (1) Specify and estimate a model of hourly wages using our CPS data
What do these costs have to do with the viability of large and small groups?
Also suppose that in 1984 each bucket of chicken was priced at $10.00. Finally, assume in 2005 the price per chicken was $16.00 and 22,000 buckets were produced. Determine the GDP price index for 1984, using 2005 as the base year.
The air temperature is 25 C and the wind speed averaged 4 m/s. The accident occurred on a sunny afternoon. Estimate the distance downwind of the spill that would exceed the worker standard exposure limit of 1 ppmv for DCA.
find the following values for a single cash flowa the future value of 500 invested at 8 percent for one yearb the
We have argued in this chapter that the primary economic function of tort law is to deter unreasonably dangerous behavior, but a second function is to provide social insurance against accidental harm. In what ways are these objectives compatible, ..
How would things change if one firm, say firm A, got to see how much firm B produced before launching production itself?
What do you think? How would these considerations affect the exchange rate and output effects of fiscal policy? Do you see any parallels with this chapter's discussion of the longer-run impact of current account imbalances?
Consider an economy with the production function Y= L^(1/3) a) Derive the Labor demand Curve b) If Labor supply curve is L^s= (w/p) , calculate the equilibrium levels of real wage, labor and output.
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