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1. Consider the Real Business Cycle model of Figure 14.11a. How does the labor supply curve need to shift for the model to explain business cycle ?uctuations? What might cause such a shift?
2. An economy is dominated by two industries, both of which are considering whether to initiate a major investment project. If both industries invest, then employment and produc- tivity are high and each industry makes pro?ts of $5 billion. However, if neither industry in- vests, the economy is weaker and each industry makes $1 billion pro?t. If only one industry invests, then the industry that doesn't makes $2 billion pro?t but the additional costs of the investing industry mean that it loses $1 billion.
Explain what could happen in the future with each of these trends below and come up with three(3) more trends not listed and do the same analysis for your three additions.
The total marginal cost functions of a competitive firm are tv+1800+2q^2 and mc=4q, where tv and mc are total cost respectively, and q is the firms total output. There are currently 100 identical firms. The demand function is p=180-.02q. P is price, ..
Discuss and explain one factor of how government involvement in marketplace can impact or not impact the economy. Give a real life example of this factor at work.
What organizational characteristics facilitate embracing accidents as sources of innovative products and services? Consider 3M and Post-it Notes.
If we modify our basic three sector model and instead of assuming that taxes are autonomous or fixed in amount (the Tx = Txo assumption) now assume that taxes are a positive function of income, will this modification have the effect of increasing, de..
IS THE SAVINGS INTEREST RATE OF INTERNET- ONLY BANKS HIGHER OR LOWER THAN THE RATE OF BANKS IN WHICH YOUR DEPOSITS(OR ANY LOCAL BANKS)?
Show that the unemployment rate, ur, is related to the employment rate, er and labour force participation rate, pr as follows: ur = (1 - er/pr ) Presume the labour market is in equilibrium when the labour force participation rate is 0.60 and the empl..
Assume that the price of x1 has changed from P1 to P1'. What is the optimal quantity of x1 at the new income I' and the P1' ? (hint: this question is asking you obtain x1*C in the notes)
Discuss the hicksian and slutskian approach to consumer behavior where there is change in price of one good given two goods
macroeconomic analysis is used extensively to analyze the potential impact of cities hosting professional sports teams
His strategy to acquire companies in different lines of business based on the requirement that each business in GE was to become the #1 or #2 competitors in the industry is touted as being particularly brilliant.
Mary has borrowed $125,000 at 8% from her parents. She is asking Kevin for $75,000 to start her own business. Kevin requires that the business make a 12% rate of return. What is Mary's before-tax cost of capital?
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