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What are two reasons why there may be a short-run trade-off between unexpected inflation and the unemployment rate.
How do each of the following sources of real business cycles would effect the economy:
- Farmers go on strike for six months.
- Oil prices fall sharply.
- Particularly favorable weather increases agricultural output
Illustrate what is the relative labor supply in the economy. Derive it and draw it in the same picture as in part (a). Calculate the equilibrium relative price of labor.
how the economy moves to a new equilibrium. Focus on short-run as well as long-run equilibrium.
Exploring a new coal mine costs $100,000 and has a 40 percent chance of finding $500,000 of coal and 60 percent chance of finding $100,000 of coal. The expected value of perfect information is:
what happened to real output? by how much would the price index have had to rise for real income to remain constant?
Consider the following game. A firm currently on the market (incumbent firm) faces the potential entry of one firm (the entrant). If the incumbent remains alone on the market, his profit is 1000. The incumbent can try to convince the entrant to do no..
How did speculation contribute to the stock market crash of 1929? Cite two examples of speculation at the time. Given that only 10% of households held any stocks, how did the stock market crash end up collapsing the whole economy? Name and explain tw..
q.the bolt-making industry currently consists of 20 producers all of whom operate with the identical short-run total
In each of the following examples determine (1) the market in question; (2) whether a shift in demand or supply occurred the direction of the shift and what induced the shift; and (3) the effect of the shift on the equilibrium price and quantity.
Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm 2 produces and sells 19 units per period, while firm 3’s periodic production and sales are 15 units. Determine the market price and the elasticity of mark..
The normal supply and demand models take the supply and demand of a particular good and show that the equilibrium price is where the two curves intersect. How do we reconcile both of these observations?
The capitalized cost of of an initial investment of $200,000 and annual investments of $30,000 forever at an interest rate of 10 % is closest to....Please show work
Determine the after-tax cash flows for this investment. make adjustment in the DDB depreciation charges if necessary in any year in light of the SV of $20k
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