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Suppose that the government makes it more difficult to qualify for unemployment insurance, for example, by increasing the duration of employment required before collecting UI benefits during an unemployment spell. Determine the effects of this change in government policy on the reservation wage and the long-run unemployment rate in the search model of unemployment.
What factors might contribute to a low level of productivity in an economy Compare these to the rapid productivity growth experience by the United States during the 1990s.
Determine the defender's lowest EUAC what is the challenger's economic life? When, if at all, should we replace the defender with thechallenger?
an economy is currently made up of a firm that produces bread a firm that produces butter and a consumer who consumes
Tony's pizza's production function is shown in the table above. Tony hires workers at a wage rate of $50 a day and his total fixed cost is $100 for plant 1 and $150 for plant 2
Discuss the effects of NAFTA
During 1993 when the economy was growing very slowly, President Clinton recommended a series of spending cuts and tax increases designed to reduce the deficit. These were passed by Congress in the Omnibus Budget Reconciliation Act of 1993.
What is the subgame perfect pricing policy for Tony?
Assume the money supply (M) is $1,200 billion, bank deposits (D) are $800 billion and the required reserve ratio is 10%. What would the Fed have to do (in terms of open market operations) to lower the money supply by 5%? Explain. (Note assume that th..
If consumption increases by five billion at each level of disposable income, then the marginal propensity to consume will
In an effort to reduce their total costs, many companies are now replacing paychecks with payroll cards, which are stored-value cards onto which the companies can download employees' wages and salaries electronically.
How do your answers change when government offers an investment subsidy worth $3 billion to each industry? Is society better off?
Evaluate the impact of the proposal to cut prices and what is the optimal profit-maximizing markup suggested by economic theory?
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