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A bathtub model of unemployment:
(a) Using the bathtub model of unemployment solve for the unemployment rate with a separation rate of 3% and a finding rate of 10%.
(b) A more general solution: Now assume that some people are separated from them jobs on good terms and on poor terms where s ¯b and on good terms s ¯g and resolve the bathtub model
(c) What unemployment rate does the bathtub model of unemployment solve for?
Sailright Inc. manufactures and sells sailboards Management believes that the price elasticity of demand is -3.0. Currently, boards are priced at $500 and the quantity demanded is 10,000 per year. If the Price is increased to $600, how many sailboard..
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Toyota bonds are currently rated AA, and Ford bonds are rated BB, Suppose the price of 1,000 one year Toyota bond is 970$. What is the rate of return on the one year Toyota bond
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 20%. The available supply is 20 units. Calculate the allocation of outputs across the two periods that maximizes the present valu..
Suppose the government issues debt to finance its fiscal deficits. The interest rate in the government debt is r=5% and suppose that output in the US shrinks at rate n = -1%. Then:
A firm that makes car parts wants to adopt pay schemes that will best motivate its various workers to be productive and they hire you as a consultant. The firm is able to accurately measure the productivity of individual workers who make windshield w..
An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. ..
Explain how do you run an oligopoly to make the largest possible profit. The oligopolistic producer of this vehicle failed to heed market signals. It failed. Can you name the company.
What is the total payment to capital in the manufacturing sector? What is the total revenue (price x quantity) of the agricultural sector? Suppose that the price of the manufactured good rises by 20% with no change in the price of the agricultural go..
Indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.
U.S. Higher alcohol taxes, more traffic deaths. Why might re be more traffic deaths in states that have higher alcohol taxes.
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