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Assume that the current Disability Insurance (DI) benefit for those who are unable to work is $X per day and that DI benefits go to zero if a worker accepts a job for even 1 hour per week. Suppose that benefit rules are changed so those disabled workers who take jobs that pay less than $X per day receive a benefit that brings their total daily income (earnings plus the DI benefit) up to $X. As soon as their market earnings rise above $X per day, their disability benefits end. Draw the old and new budget constraints (label each clearly) associated with the DI program, and analyze the work-incentive effects of the change in benefits
Answer the next three questions on the basis of the following production possibilies data for Francia and Galacia. All data are in tons.
If the Federal Reserve sells government bonds, will short-term interest rates rise or fall. Explain how this will affect aggregate demand and the rate of growth of the economy.
Your analyst tells you that he has estimated the following linear regression model of your company's long run technology:
A firm producing hockey sticks has a production function given by Y= \(2\sqrt{KL}\) in the short-run, the firm's amount of capital equipment is fixed at K = 100. The rental-rate of capital is $1, and the wage rate is $4.
He define you that the report will be handed out to the staff prior to the staff meeting next week and that it should outline the various forms of market structure.
Consider a bond that promises to pay $100 in one year. a. What is the interest rate on the bond if its price today is $75? $85? $95? b. What is the relation between the price of the bond and the interest rate? c. If the interest rate is 8%, what is t..
Sherry was just rotated out as Microsoft's X-Box sales manager for the Canadian market. In Canada, the X-Box competes with Nintendo's GameCube.
Illustrate is the relationship among the variable that you selected and the economy. What trends do you see in the data sets. Support your assertions of trends with statistical evidence.
An example of a fiscal policy Lowering the interest rate on loans to corporations, Increasing taxes to pay for greater military spending,are they true or fslse.
What would be your subsequent steps? Make sure you include both the positive and negative effects of your actions making sure you include the trade-offs or opportunity costs.
Suppose that aggregate price level is constant, interest rate is fixed, and there are no taxes on foreign trade, how much will the aggregate demand curve shift and in what direction if the following events occur?
Elucidate what does the US government hope to achieve through the use of its antitrust policy.
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