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Suppose in country Triniland employers are required to pay overtime at 50% above the normal wage rate for workers who work beyond 8 hours a day.
Use your diagram in (a) and (b) to analyze and show graphically the change in work incentive facing working who were working 7 and 8 hours before the law change. If applicable, clearly specify any additional assumptions. Please draw a separate graph and tell me what happens to work/leisure hours.
In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain?
What is the profit-maximizing price-output combination and what are the levels of the profits and consumer surplus at that point? What is Dead-weight-loss?
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
Efficiency and sustainability are management goals with respect to renewable resources. As Field explains, biological and economic considerations are typically blended in determining the efficient allocation of these resources.
Vulnerability Analysis
Changes in government spending and interest rates
Explain how a change in investment can have big impact on GDp causing nationwide slump. Recall that investment is "small' relative to the whole economy.
Questions on Long-Run Labor Demand and Factor Substitutability, Own-price elasticity, Cross-price elasticity
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
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