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If the Fed raises the inflation rate and initially expected inflation does not change, in the short run the unemployment rate ________ the natural unemployment rate, and in the long run the unemployment rate ________ the natural unemployment rate.
A) is less than; is less than
B) is less than; equals
C) is larger than; equals
D) is less than; is larger than
E) is larger than; is larger than
A new OSHA rule requires that welders be given 2 hour break for every 2 hours of work to prevent carpel tunnel syndrome. Using production theory, explain what will happen to the capital labor ratio in both the short run (when capital is fixed) and..
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
If a monopolist’s marginal revenue from selling another unit is negative, then its total revenue must be __________ and the price elasticity of demand for its product is _______.
Fixed costs exist only in:
Suppose a monopolist can purchase Labor at a price w = 1 and can purchase Capital at a price r = 9. The monopolist’s production function is given by Q = L^1/2(K^1/2). The demand facing the monopolist is given by P = 78 – 6Q. What is the Monopolist’s ..
If the Social Security retirement system was a private retirement system, it would be declared bankrupt. Discuss why this is so and why the Social Security system can continue to pay benefits despite the fact that it can be considered bankrupt. Discu..
A man is planning to retire in 20 years. Money can be deposited at 6% interest compounded monthly, and it is also estimated that the future general inflation rate will be 4% compounded annually. What amount of end-of month deposit must be made each m..
"Suppose that a worker in Larztopia can produce either 8 lattes or 2 pizzas per day, while a worker in Whiteland can produce 4 lattes or 8 pizzas per day. Each nation has 100 workers. Also suppose that each country completely specializes in producing..
A corporation issues a bond whose PAR value is 10,000 and bond rate of return is 12% annual compounded quarterly. If you plan to sell the bond at face value after 3 years and want to achieve an investment rate of return of 8% annual compounded quarte..
Does the best regression model that you ran in problem 27 have severe serial correlation? How can you tell?
GDP can increase from one year to the next by: Increases in prices while quantities of goods and services are constant. Increases in the quantities of goods and services produced while prices remain constant. Both prices and quantities of goods and s..
Compute Macaulay and modi?ed durations for the following bonds:
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