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How many of the following four business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real wages? Explain your answer briefly in two or three sentences. You can safely assume that the substitution effect is stronger than the income effect.
The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis.
Are there specific differences between the short-run and medium-run implications of the increase in interest rate targets? Use the appropriate graphs (IS-LM and AS-AD) to illustrate your points. If relevant, include the liquidity trap in your analysi..
You are the manager of a firm which produces also markets generic type of soft drink in a competitive market.
Would your answer change if BOC could issue SFr commercial paper supported by the revolving credit at 3.5%.
In looking at GDP we see that not all aspects are counted. Do you find that the items like buying a home or a used car should be counted in GDP?
Illustrate what do laws of supply and demand predict would be result of an immediate removal of minimum wage in terms of price of labour and quantity available.
Due to limited borrowing options, the government may ask the central bank to print money. We also learned that the real seinorage revenue of the government depends on inflation and real money holding of the public, that is R= \prodM/P?. Explain the c..
In December 1992, the government began requiring that food contain labels with nutritional information. The information had to be verified by independent laboratories. The price of verification was $20,000 per food item. What impact would this have o..
The internet has become a major hub for conversations, this has connected all on the web and allows eMarketers to track all conversations that take place and this provides an understanding for all parties. how would you measure the effectiveness of t..
Annual savings due to energy efficiency thermo well have a most likely value of $30,000. The most optimistic value is $40,000 with a probability of 0.2 and a most pessimistic value of $20,000 at 0.3. The First Cost is $150,000, the interest rate 10%,..
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
In an economy with income taxes, if the marginal propensity to consume were 0.8, the tax rate on income were 0.2, and the marginal propensity to import were zero: (a) How large an increase in government spending (with no change in taxes) would be req..
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