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Suppose the economy has a natural rate of unemployment of 6%.
Suppose short-run output over the next 4 years is +1%, 0%, -1%, and -2%. According to Okun’s law, what unemployment rates would expect to see in this economy?
Consider another economy in which the unemployment rate over the next 3 years is 6%, 7%, and then 4%. According to Okun’s law, what are the levels of short-run output in this economy?
The Federal Reserve System is structured in such a way as to insulate monetary policy from the political pressures characteristic of the rest of our political system of representative democracy. Do you agree or disagree with this quote? Explain your ..
The production function is given as f(L, K) = L2 K . In the short run, K is fixed at 1. The price of L is $3 per unit and price of K is $5. In order to produce 100 units as a desired output, how much is the total cost? What is the price elasticity of..
which good should the government impose the tax if it needs to maximize government revenue
Assume the world has only the U.S. and Germany, and that trade between them is balanced such that neither runs a trade deficit nor surplus. If exchange rates now change such that the U.S. dollar becomes more expensive for Germans to buy (and all else..
What is the effect of bad weather for farming or some other temporary decrease in the availability of raw materials?
Explain using the money market graph, what happens when (1) the price level (CPI) goes up, (2) when the discount rate is lowered and (3) when the Fed sells more bonds on the market. What will happen to the equilibrium interest rate in each case.
Suppose that the demand curve for a product is given by P=36-Q where P is in thousands of dollars per auto and quantity is in millions of cars per year. Please make a graph of the demand curve.
Are there any advantages of mass marketing i.e. treating a market segment as homogeneous and marketing to the whole market with one marketing mix?
A lump sum of $5.2 million in the first year. Assume the market interest rate will be 6% for all these years.
What are the principal arguments of pharma companies who oppose making exception to IPR laws for developing countries? What are the arguments by NGOs and others for a differential treatment?
The variable frequency drive (VFD) for a 290 hp motor costs $19100. How much will the drive for a 115 hp motor cost if the cost-capacity exponent is 0.642?
In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
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