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Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual rate of unemployment is 13 percent.
Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?
GDP gap = %
Forgone output = $ billion
Compute the total revenue and total economic profit at each level of output. Compute the pizza shop's marginal costs and marginal revenue level of output. What is the profit maximizing rate of output for pizza shop?
Illustrate the process of bringing a new international bond issue to market. What should a borrower consider before issuing dual-currency bonds. What should an investor consider before investing in dual-currency bonds.
Assume that x1 and x2 can take any value (0,1,2,3,4,5). The payoff to student i is 10 - xi if she gets an A and 8 - xi if she gets a B, i = 1, 2. Derive the strategies that survive the iterative deletion of strictly dominated strategies.
Illustrate what is offshoring of white-collar service jobs, and how does it relate to international trade. Why has it recently increased.
In what ways is the inflation tax a tax, and in what ways is it not a tax and who pays for the inflation tax?
Illustrate the main kinds of information and data needed in order to evaluate a capital.
What is your marginal revenue and marginal cost functions? To maximize profits, how much should you produce at plant 1? At plant 2? What is the price that maximizes profits?
According to Gerald Baker, columnist for London Financial Times, November 23, 1999, "In the US, banks are, by whichever measure chosen, in unusually good shape for this stage of an expansion.
With the help of an AD-AS diagram, explain the effect on the price level and real GDP. Use an upward sloping AS curve and be clear about the interconnections among markets.
So explain how popsicles will be sold every day in the short run if the price rises to $2 each? In the long run, if the price rises to $2 each.
Global Widgets Corp is a manufacturing company that builds standardized galvanized metal benches for sports arenas and stadiums-Do you think one of these firms would be more likely to benefit from a de-centralized decision making organizational arc..
Discuss some polices the United States government could take to increase United States economic growth? Name two or three and describe why these would encourage growth.
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