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What are the short run and long run effects of a one-time increase in the stock of labor (because of, for example, a particularly large cohort of college graduates joining the labor force)? Use the Solow model with g=0 and n>0 to answer this question.
Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.
Profit associated with polluting for Friedman Inc are 40Q-2Q2 ,where Q=pollution emitted (in tons) and profit are measured in dollars. Marginal benefit of polluting, derived from this function are MB =40-4Q. how much pollution do you expect Freidman ..
Which of the following statements correctly reflects the developments in the U.S. automobile industry following an across the board increase in wages paid to auto workers?
Two firms compete by choosing price. Their demand functions are Q1 = 40 – P1 + 0.5P2 and Q2 = 20 +0.5P1 - P2where P1 and P2 are the prices charged by each firm, respectively, and Q1 and Q2 are the resulting demands. a. Firm 1’s best response function..
Compute point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points.
Considers the choices of Native Americans who decide to stay on their tribe native land or reservation also those who select to relocate to a city.
Mary invested $20,000 into a bond fund 10 years ago. This fund had a track record of providing a very good return. She checked with her investment broker and found out that she has an accumulation of $36,000 in the account. What is the annual interes..
A section of roadway pavement costs $22,000 a year to maintain. What immediate expenditure for a new replacement of the existing pavement is justified if no maintenance will be required for the first 5 years, $7,500 per year for the next 10 years and..
It has been argued that in the long run monopolistic competition is inefficient because
I think people would agree that the one most ubiquitous tool for welfare measurement in the economic literature and in economic education is the notion of total surplus. Throughout it's history, total surplus has been criticized several times and on ..
Illustrate what effort level would maximize profit per period. Illustrate what is the maximum profit per period in this fishery.
Two identical countries, A and B, can be described by the IS–LM model in the short run. The governments of both countries cut taxes by the same amount. The Central Bank of A follows a policy of holding a constant money supply. The Central Bank of B f..
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