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Suppose the economy has a natural rate of unemployment of 5%.
a. Suppose short-run output over the next four years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we expect to see in this economy?
b. Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) in this economy?
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm's marginal cost is constant at $30 per unit. a. Express the firm's marginal revenue as a function of its price. MR = x P b..
Illustrate what is the effect on the supply and demand of skateboards. Every events described below will have some impact on the demand for skateboards.
Assume you were given the following data for an economy without government spending, exports, or income. C is desired consumption, I is desired investment,
One popular voting scheme is rank order voting, where persons assign a rank (1,2,3) to the possible options; the assigned ranks are then added up and alternative with lowest sum wins.
List out also describe the firms in the industry. Discuss the product, production methods, scale of production, and sources for raw materials.
Fastly Delivery Corporation has two divisions.
Plot aggregate demand and long run aggregate supply curves. Show aggregate demand schedule.
Important information about Regression anaylsis. Compute the equilibrium price and quantity.
Illustrate what are the effects of the current tax policy on US businesses in the short-run and in the long-run.
Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Describe your answers.
If the substitution effect dominates the income effect, then as increase in the wage rate will increase the quantity of labor supplied by an individual. The more complicated a production process is
The market for toasters is a competitive market. Suppose that the quantity of toasters supplied per year depends as follows on the price of a toaster:On a piece of graph paper, plot the supply curve for toasters. How does the quantity supplied of toa..
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