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The minimum wage was increased in 1996 amid cries by many economists that it would cause unemployment. Critics pointed out that the last time the minimum wage went up the same dire predictions from economists were made, but more people were employed after the minimum wage increase. The same, they argued, would occur again. How it may be possible for increases in the minimum wage to have little impact on employment levels. Please explain using the following concepts: a) long-run versus short-run; b) fixed inputs; and c) increase demand/output
Explain and graphically illustrate the effects of the tax cut on aggregate output, consumption, employment and the real wage.
Illustrate what steps would your group have to take to drive our country out of this economic slowdown and towards a more prosperous America.
After paying the movie distributors and meeting all other noninterest expenses, the owner expects to net $2 per ticket sold. Construction costs are $1,000,000 per screen. What is marginal benefits and marginal costs.
Find the SPNE of this game. Is there an outcome of the game that both parties prefer to any SPNE? Also find a NE for which the outcome differs from any SPNE outcome.
The factory operation creates smoke that affects nearby homeowners, causing respiratory ailments and similar problems.
Determine where each of following increases, decreases, or remains unchanged in short run: market interest rate, quantity of money demanded, investment spending, aggregate demand, potential output, price level and equilibrium real GDP.
Consider the following Demand equation that represents Demand for goods to your company produces q=100-2p. Total cost of production is cq. Given to your company's objective is to maximize profit
Indicate whether each of the following statements is true or false. Explain why. a. When the law of diminishing returns takes effect, a firm’s average product will start to decrease
Advanced analysis) Answer the next question(s) on the basis of the following consumption schedule: C = 20 + .9Y, where C is consumption and Y is disposable income. REfer to this data. At an $800 level of disposable income, the level of savings is:
Each of the five nations that have been asked to bid for the broadcast rights for the London 2016 Games. Prepare to negotiate prices and other organizational details.
After that illustrate what is that firm as marginal revenue as it increases output from 1700 units to 2300 units
Suppose that consumer price index at year-end 2011 was 150 and by tear-end 2012 had risen to 160. What will be the inflation rate during 2012?
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