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Assume that Mf = Ma. Find the real wage that makes total labor supply and total labor demand exactly equal to each other (this is called, the equilibrium real wage). Find the equilibrium number of hours worked in this economy
What do the unusually large maturity yield differentials noted above suggest about investor expectations of future short term interest rates?
What is the marginal propensity to consume in this economy? What is the multiplier in this economy? What is the equilibrium level of GDP in this economy?
Elucidate whether current economic conditions are more consistent with the Keynesian or classical economic theories.
They have the same saving rate, the same depreciation rate, the same population growth rate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. What would you predict for t..
Since all economies are faced with scarcity, how might nations attempt to minimize the human hardship associated with scarcity Try to use concepts seen in this unit such as production possibilities frontier, comparative advantage, circular flow, e..
Suppose that the production function is given by Y = C + KaN1-a where C is a positive constant. Does an increase in C affect the marginal product of any factor? Will it affect labor productivity?
Choose five innovations associated with the Industrial Revolution and five innovations from the Technological Revolution. For each innovation, identify the effects it had on individuals, societies, businesses, and politics.
Suppose that the economy is thought to be 2% above potential (that is, the output gap is 2%) when potential output grows 4% per year. Suppose also that the Fed is following the Taylor rule, with an inflation rate of 2% over the past year.
Manchester Foundry produced 45,000 tons of steel in March at a expenses of $1,150,000. In April, foundry produced 35,000 tons at a cost of $950,000.
Does the principle of "increasing opportunity cost" hold in this nation? Explain briefly.(Hint: What happens to the opportunity cost of bread-measured in the number of ovens-as bread production increases?)
Describe the concept of economics of scale and how long run costs curves shape the economic structure of industries.
A decision making model is more beneficial than simple comparing costs and benefits because decision making model encourages you to consider multiple options?
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