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You are in charge of making recommendations based on economic forecasts to upper management of your firm, which produces widgets and employs 2,500 workers. Upper management has informed you that they are planning to build a new facility and hire 500 additional workers. They would like you to research leading indicators and produce a detailed analysis of where the economy is heading in the next 6 months. What would you look for in terms of leading indicators (discuss at least three indicators), and what recommendations would you make to upper management based on your findings regarding leading indicators? Be sure to consider the macroeconomic nature of leading indicators, and the microeconomic nature of your firms’ decisions
Find the Nash Equilibrium of the game and explain why your result is the equilibrium. If the Nash Equilibrium the best outcome for the game? If not, explain how this outcome can be improved.
What are two reasons why there may be a short-run trade-off between unexpected inflation and the unemployment rate. How do each of the following sources of real business cycles would effect the economy:
An open economy with a fixed exchange rate follow a money growth rule successfully if capital moved freely across its borders..
The economy is starting from a point of disequilibrium as there is a recessionary gap. Potential GDP is $600 billion and the recessionary gap is $50 billion. An economic shock then hits this economy and there is a sudden drop in the value of the Cana..
Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1
Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates
Assume that the company’s production function is Q=0.5L2K2. The current wage rate is $30 a day and the daily rental rate for one machine is $30 as well. Determine the capital and labor requirements that will allow the company to produce a quantit..
In case of a Giffen good, income effect dominates substitution effect. All the points along the demand curve share the same elasticity. The marginal cost curve passes through the minimum point of the average fixed cost curve.
Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.
Define the 3 types of price discrimination and explain why 1st degree discrimination is very difficult to practice. Provide 1 example where a form of 1st degree discrimination is practiced.
Can a for-profit business engaged in maximizing profits also be an ethical business? If so, why or why not? Include discussion of at least 1 ethical theory, refer to a least 2 materials assigned in Theme 2, and give at least 1 specific example to cla..
etween February 2008 and Summer 2009 the Fed supplemented its open market operations with a greatly expanded program of direct lending (both overnight and short term 28 and 84 day loans) to commercial banks, investment banks, brokerage and primary de..
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