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Question: Discuss how the following changes would affect the natural (or frictional) rate of unemployment:
a) Elimination of unions.
b) increased participation of teenagers in the labor market.
c) larger fluctuations in the level of aggregate demand.
d) increase in unemployment benefits.
e) elimination of minimum wages.
f) lager fluctuations in the composition of aggregate demand.
The rate of growth in the productivity of capital is 1 percent, the rate of growth of capital is 2 percent, the rate of growth of labor is 1 percent, and the rate of growth in the productivity of labor is 3 percent.
Economists make a distinction between changes in quantity demanded and in demand:
Firm S supplies inputs to firm B. Because producing the input is quite complicated, some defects are inevitable. Firm S can reduce the rate of defects at a cost. In turn, defective parts lower firm B's profits (because of lost sales and unhappy cu..
Suppose there is a simultaneous increase in the demand for diamonds and increase in the supply of diamonds. Which of the following will occur as a result of these simultaneous events?
Writing in the New York Times, Simon Johnson, an economist at MIT, makes the argument that people outside the United States may at some point decide to "save less (in which case they may hold onto their existing United States government debt but n..
You have raised $10 million from investors to open a bank. You get to decide how aggressive you want to be in attracting deposits. 1. You must choose whether you want to be conservative or aggressive - you can take in $90 million or $240 million in d..
Express the scalar product of two blades in terms of the scalar product of their duals. It should only differ by a sign, which you should express in terms of the grade of the blades and the space they reside in.
A combination of low prices with strong competition by foreign competitors and so-called "legacy costs" of unions are cited as the primary reasons why so many steel companies are filing for bankruptcy. In 2002, as Brownstown Steel Corp.
Toys R' Us sells two types of toys, Barbie house (toy A) and Dizzie's condo (toy B). The store owner pays $10 and $12 for each one unit of toy.
The production technology is fully characterized
Assume that the government imposed a price ceiling on gasoline in order to prevent prices from getting too high. What are the economic implications of action in the gasoline markets? Use graphs as needed and explain your answers thoroughly.
john and dave value national defense differently. johns demand for the public good is p 50 - .20q. daves demand for
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