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It has been found that immigrants who come to the U.S. from nearby countries (such as Mexico or Canada) have a very high probability of returning to their countries of origin within a few years of coming to the U.S. On the other hand, immigrants from faraway lands have a very low probability of returning to their countries of origin soon after their arrival. Holding all other factors constant, which of these two groups of immigrants would you expect to have a steeper relationship between wages and age while in the U.S?
What is the Deadweight loss cause by the insurance policy? What happens to the size of teh deadweight loss if it turn out that the marginal external benefit of visiting the doctor is $50?
Suppose that computers use two units of capital for each worker, so that KC = 2LC, while shoes use 0.5 units of capital for each worker, so that KS = 0.5LS. There are 100 workers and 100 units of capital in the economy. Solve for the amount of labour..
Suppose that people derive utility from two goods---housing (H) and all other consumption goods(C). Show a typical consumer's allocation of his or her income between H and C.
Describe the current state of the U.S. economy using the two monetary aggregates (M1 and M2) currently published by the Federal Reserve. In your description, illustrate the trends of the two monetary aggregates. . Evaluate what the Federal Reserve Ba..
You work at a Gazebo company (Shady Tents) and you hire an economist to estimate the price elasticity of demand for your product, and the estimate is .9 (in absolute value) and this has been fairly stable over the last year.
Discuss and explain the following questions using knowledge about the dynamics of Aggregate Demand and Aggregate Supply Model. What is the cause of the 2007-09 Great recession? What happened to aggregate demand and aggregate supply model during this ..
Suppose the cross-price elasticity of demand for pork with respect to the price of chicken is equal to +0.4. What does this tell you about the relation between pork and chicken? What will happen to consumption of pork if the price of chicken falls by..
Suppose that the required reserve ratio for checking deposits us 10% and that banks do not hold any access reserves. If the Fed sells $1 million of government bonds, what is the effect on the economy’s money supply?
Discuss how the Dual-Concern Model and Big Five Personality Dimensions facilitate recognizing bargaining styles and how such styles impact behaviors and strategies in a negotiation.
Assume initially that the economy is in a state of long-run equilibrium. The real GDP equals potential GDP and only natural unemployment exists. Now suppose that consumer confidence plummets and the aggregate demand decreases. What will happen to the..
compute the test statistic. at 95% confidence test to determine if the is a significant difference in the means of the 3 populations.
In the long run the interest rate adjusts to adjust to balance the supply and demand for loan able funds. In the short run, the interest rate adjusts to balance the supply and demand for money. Discuss.
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