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Hotelling’s rule. Using the (graphical) two-period model for a nonrenewable resource, analyze the effects of the following on equilibrium prices and quantities in the market for that resource:
(1) an increase in the interest rate
(2) an increase in second-period population
Illustrate what does a contraction Gap imply about the actual rate of unemployment relative to the natural rate
What are the characteristics of perfect competition? Why do restaurants tend to display characteristics of perfect competition and what are the long-run benefits of running a restaurant, considering its place in the perfect competition?
Some economists have suggested that the best way to control medical costs is to remove the profit incentive for health care providers, particularly hospitals.
A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is the inflation-adjusted rate of return per year? the real rate of return per year?
Define the Social Planner Problem. Solve the Social Planner Problem. This is, find the Euler equation in terms of exogenous variables and the only endogenous variable k2. Define the tax distorted competitive equilibrium of this economy. Solve the rep..
A growing economy means that the economy is producing more also more stuff, either since it has more resources.
"I'd rather have a 1% pay cut when prices fall by 3% than a 5% pay increase when the rate of inflation is 8%." This is an example of: Irrationality, Rising real wage, Deflation always being better than inflation, Excessive aggregate demand.
Illustrate what price and quantity of computers should you produce to maximize your firm's profits. Explicidate long adjustment should you anticipate.
Efficiency wages are
You received a check from the bank for $18000. You know $7000 was deposited when you turned 1. Using your current age (please state it), what was the effective annual interest rate? What is the nominal rate if it was actually compounded semi-annually..
Calculate the Golden Rule level of capital per effective worker and the saving rate associate with this steady state.
Weigh the risk also benefits of outsourcing internationally by corporate America for the standard working person.
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