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Describe the main explanation for the downward rigidity of wagesin the modern macro economy. Evaluate their probability of being correct and important.
Consider a homogenous-product Cournot duopoly model in which Q is the market output-Determine the best-response function for each firm. Draw a diagram showing the two best-response functions.
Give a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.
As with this data how could you make the cost benefit test to tell if at a given percentage level abatement is effiecient.
Assuming that the merger faces some threats and that the steel industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects.
Where z is marginal utility per dollar spent, x is the amount spent on product A, and y is the amount spent on product B.
In today's market, Ford and Chevrolet produce small cars that are designed to compete with Korean made small cars. The American cars are slightly larger and slightly more expensive.
Identify and discuse the IS-LM framework(determination of income and interest rate) and the wquivalentAD-AS framework (determination of price level andincome) and how changes in equilibrium occur as a result of changes in fiscal and money policy..
Use the multiplier to indicate how a decrease in investment of R50 will affect the GDP. Show all caluclations. Illustrate this on a graph
Congressman Localstuff always votes for a balanced budget amendment to the U.S. Constitution. He also always votes for spending bills supported by the leadership of his political party. Is this rational?
Some economists advocate such a rule for monetary policy but believe π and y should be the forecasts of future values of inflation and output. What are the advantages of using forecasts instead of actual values What are the disadvantages
Why do we consider a business-cycle expansion different from long-run economic growth? why do we care about the size of the long-run growth rate of real GDP versus the size of the growth rate of the population?
Consider a small country that exports steel. Suppose that a "pro-trade" government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy affect the domestic price of steel
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