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The United States at the end of the 1990s witnessed rapid growth in real income and historically low rates of unemployment. Suppose two hypotheses for this decline are offered. The first is that productivity has increased owing to new technologies and that the natural rate of unemployment has fallen. The second is that the economy has been in a cyclical boom and unemployment has fallen well below the natural rate. How might you distinguish between these two hypotheses? Do they have different implications for inflation?
Following is a multiple regression in which dependent variable is market value of houses and independent variables are the age of the house and square footage of the house.
Use a model with horisontal productdifferentiation. Suppose that two firms compete. They are situated at opposite sides on a linje with length 1. Firm 1 in point 0, and firm 2 in point 1. The konsumers transport costs are linear in the distence to..
Advice for an Unprofitable Firm. You've been hired as an economic consultant by a price-taking firm that produces baseball caps. The firm already has a factory, so it is operating in the short run.
women and selected minorities are systematically excluded from high-paying occupations and crowded into low-paying occupations, decreasing their wages and reducing domestic output. B. employers having high discrimination coefficients will be crowde..
Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 2 perc..
Which recession had the largest increase in the rate of unemployment? Begin with the month before the quarter in which output first falls and measure to the highest level of the unemployment rate before the next recession.
Why does the Fed not stick more closely to its target paths for money?
After analysis of the business, the manager has determined that weekly demand can be approximated by Q = 25,000 - 1000P. The firm's cost function is C = 25,000 + 13Q + .002Q2, where Q is output per week. Determine the profit maximizing price and ou..
find the diagonal and off-diagonal elements of b 2- find the transpose b' 3- show that the transpose of b' equal b that is (b')'=b
Suppose that the country of Bigu has a population of 127 million, of which 83 million are in the working-age population. Of those , 25 million are not in the labor force and 52 million are employed. A) Calculate the working age population as a per..
Comment on the following statement. "A depreciating currency puts domestic labor on sale."
Bolivia's real GDP per capita is growing at a rate of 1.3%, which would we expect in the long run Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.
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