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1. For years, the U.S. government has been trying to get Japan and the European Union to expand their economies faster. Explain how more rapid growth in Japan would affect the U.S. economy.
2. If inflation is lower in Germany than in Spain (as it is), and the exchange rate between the two countries is fixed (as it is, because of the monetary union), what is likely to happen to the balance of trade between the two countries?
A firm has the production function Q = K0.4L0.6 . The wage is $60, and the rental rate of capital is $20. Find the firm's long-run expansion path.
Write a program to compute the autarky solution, and use it to reproduce Hopenhayn and Nicolini's calibration of r, as described in text.
So compute the variance of each stock, where $50 is invested in each, and the variance of the portfolio will be four times this amount.
Imagine you are preparing to become a police officer. How does the increased focus on counterterrorism efforts affect your perspective of your future career?
Explain why Pepsi's profit-maximizing price seems to be relatively insensitive to Coke's price. That is, why is Pepsi's reaction function so flat?
Calculate Woody's expected utility level without any health insurance coverage.
There is a $180,000 overhaul cost in year 8. The first cost is $420,000 and the annual operating cost is $30,000. Revenue from power sales is expected to be $100,000 per year. The facility will have a salvage value of $75,000 at the end of year 15. i..
a.) Determine the profit maximizing level of output. b.) Compute the profit maximizing price. c.) Calculate the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus.
Using the answers to parts a and b, state the decision problems of the two governments when they act as independent ‘‘leviathans'' and attempt to maximize revenue. What is the equilibrium level of taxes?
Siberia can be considered as a closed economy. Recentdata about its population movements indicate that the region suffered from asevere loss in its working age population from 1995 to 2005.
"During periods of inflation, people use real resources to reduce their holdings of fiat money. Such activities produce a private benefit with no corresponding social gain, which illustrates the social cost of inflation". Explain this quotation an..
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