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This chapter covers four broad classes of research-rational expectations theory, random walk in output, real business cycle theory, and models that endeavor to explain why output can diverge, in the short run, from its full-employment level. To what extent do these models complement or contradict each other? Discuss.
A firm purchases goods on credit worth $1,250. The same firm pays off $1,000 in old credit purchases. An investment is made via the purchase of a new facility and equity is issued in the amount of $3,000 to pay for the purchase.
Anne has a job that requires her to travel three out of every four weeks. She has an annual travel budget and can travel either by train or by plane. The airline on which she typically flies das a frequent-travel program that reduces the cose of h..
Determine the equilibrium output level for both the leader and the follower.
a)Compute the equivalent annual inflation rate, based on the US Consumer Price Index, for the period 1981 (when CPI was 90.9) to 1986 (when CPI was 109.6) b)Using the equivalent annual inflation rate computed in part (a), estimate the Consumer Pri..
Would a ?rm from a small country be more or less likely to be accused of dumping when it exports to a large country (relative to a ?rm from the large country export- ing to the small country)?
How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now Assume the bank will lend at a nominal 14% per year, compounded semiannually.
We first assume σi2 = σ2 for all i. Obtain the OLS estimator of β, which we denote β^, and find E(β^) and var(β^). Using your answer in part (a), obtain an unbiased estimator of var(β^)
Just roll over and accept benefits cuts that you as workers think are unnecessary? Invite an independent union to organize your workplace?
save the down payment required to purchase a vacation home at the end of five years.if the required down payment is $25,000 and you can earn 5% year on your saving account how much do you need to set aside at the end of each of the next five years
What determines the classification of the industry? How does this affect the pattern of international trade?
Yo=1200 Y=C+I+G C=130+.5(Y-T) I=(-400)-(10R) G=150 T=50 1. Compute private savings 2. Compute public savings 3. Compute the value of the equilibrium real rate of interest (R) 4. Suppose G rises from 150 to 200. What is new R?
Suppose the government reduces taxes by $20 billion, that there is no crowding out, and that the marginal propensity to consume is 3/4. 1. What is the initial effect of the tax reduction on aggregate demand
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