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Suppose that there is an increase in EI benefits, and also an increase in welfare benefits (which is considered as another social program), that are represented in the DMP model as payments to everyone who is not in the labour force. What will be the effects on the unemployment rate, the vacancy rate, the labour force, the number of firms, aggregate output and labour market tightness? Show the changes using diagrams and also explain your results.
The markets will over produce goods that have external costs because
Suppose you have an asset with the following cash flow and that you face a MARR of 5%. If your client asks for the "levelized cost" what number do you give them?
Many professionals believe it is impossible to regulate ethics. Yet, the SEC and other federal agencies provide rules, regulations, and laws surrounding corporate
Suppose, as in the federal income tax code for the United States, that the representative consumer faces a wage income tax with a standard deduction. determine the effects of this tax change on the consumer, and explain your results in terms of incom..
Illustrate what would happen to total employment, the size of the labor force, and the unemployment rate? Show the results graphically.
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why?
Now Assume that the interest rate falls to 50 percent, and the household decides not to borrow or lend at all. Is the household better off or worse off with the higher interest rate.
Analyze the situations involving risk below to determine if they involve Moral Hazard (M), Adverse Selection (A), or the Principal-Agent Problem (P). For Moral Hazard write “M” in the blank.
Suppose that computers use two units of capital for each worker, so that KC = 2LC, while shoes use 0.5 units of capital for each worker, so that KS = 0.5LS. There are 100 workers and 100 units of capital in the economy. Solve for the amount of labour..
How much do you have to deposit today in order to allow 5 annual withdrawals, beginning at the end of year 8, with the first withdrawal of $1000 with subsequent withdrawals decrease at the rate of 5% over previous year’s withdrawal? The interest rate..
The recent merger of US Air and American Airlines received both national and local attention. The US Department of Justice contested the merger on the basis it would produce harmful monopoly-like behavior in the airline industry. Develop an argument ..
Money Definitions. To answer the following questions, refer to the money definitions and relationships 1: Total currency = (currency in circulation) + (vault cash) 2. Total reserves = (vault cash) + (reserve deposits) 3. Monetary Base (MB) = (currenc..
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