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The price to drive on a freeway is zero at all times of the day. This price establishes equilibrium at 3 a.m. but is too low to establish equilibrium at 5 p.m. There is a shortage of freeway space at 5 pm.
A. Graphically show and explain how carpooling may eliminate the shortage and explain your answer.
B. Graphically show and explain how building more freeway may eliminate the shortage and again explain your answer
a firm that manufactures office desks has the following production function in the short runq 400 l0.8 k0.5whereq the
Discuss the likely sources of the economies of scale that underlie the large size of these firms. [Note: the stocks of private firms are not traded on public stock exchanges
If the policy interest rate is near zero, what less conventional monetary policy tools might a central bank use to stimulate the economy? How do these tools work? In what way is central banking in the euro-zone area different from or similar to th..
If you are the chief economist of a country experiencing high unemployment and flat GDP, what macroeconomic policies might you enact in response to these economic conditions? How would you expect these policy changes to impact the economy?
There be surplus supply or surplus demand. What would be the quantity of surplus demand or surplus demand.
Compute the substitution effect and income effect associated with a multiplicative price increase Δ in pY, that is, multiplying pY by Δ>1, for the case of Cobb-Douglas utility u(x,y)= xαy1−α.
Compute the elasticity of demand for every parameter.
Survey the monetary policies adopted by the Federal Reserve Board since the countries financial crisis erupted in 2008. How will these policy steps affect the nation’s employment, inflation, real interest rate and real exchange rate over the long run..
One of the goals of macroeconomic policy is to reduce the severity of business cycles. Q. If the severity of business cycles were reduced, what would be the effect on each of the four types of unemployment and on the unemployment rate as a whole
The park service wants to restrict the number of visitors to Yellowstone National Park to Q*,which is fewer than the current number of visitors. It considers two policies: (i) raise the price of admissions, or (ii) set a quota. Compare the effec..
A is a much more demanding and also a more prestigious institution than B. B is a safe option in the sense that you know you will do reasonably well academically there, and that after graduation you will land an "adequate" job.
What is gross about gross domestic product? Could an economy enjoy a constant or growing GDP while not replacing wornout capital?
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