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Return to the situation of year 1 in the previous problem. By how much would unemployment need to rise to lower inflation in year 2 to 3 percent? Suppose unemployment is kept at this higher level. What happens to inflation in year 3? In year 4? How many years does it take to get inflation down to zero? Make a table like the one in the previous problem to show your results.
How much revenue will the government raise by taxing Beatriz? How does that revenue compare to her economic losses? Does the new tax raise enough revenue for the government to compensate her for her loss?
Suppose Mary earns $13 an hour installing transistorized digital chips in electronic calculators. If you were unemployed, would you offer to work for $8 an hour to get the job Why might a profit-maximizing employer turn down your generous offer
A competitive industry currently consists of N= 10 identical firms. An individual firm's total cost function is given by TC = 0.5q2 + 200. Market demand is given by Q = 3000-5P. In the short run, how much will each firm produce in the equilibrium
The market demand curve for cable is P = 1000 - Q, where Q, the firms output, is here the number of hundreds of households with cable. The cost of supplying Y hundred households with cable is TC(Q ) = 500 - 50Q + 2Q*Q.
To the equation in part (v), add an interaction between electric and educ . Is its co- efficient statistically significant? What happens to the coefficient on electric ?
How many domestic workers will be hired?
How does a monetary expansion (in an economy with flexible exchange rates) affect net exports?
Antonio buys five new college textbook during his first year at school at a cost of $80 each used books cost only $50 each. When the bookstore announces that there wukk be a 10 % increase in the price of new books.
1. What is the consumption spending C at the equilibrium 2. The government is willing to consider an increase in public spending only if the multiplier is higher than 1.5. Base on your calculations will the government implement the increase in govern..
Wilson Wonders's bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity?
estimation and testing of capital asset pricing modelnbspthe capital asset pricing model capm is an important model in
go to FRED and search for UNRATE and compare the most recent unemployment rate to the rate associated with full employment as defined by the series NROU on FRED. Note that NROU is quarterly data so match the quarter with the most recent unemployme..
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