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Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume that v=2 and that the inflation rate last period was 2%. Assume the natural rate of unemployment is 5.5%.
1. How much can we expect this to increase the unemployment rate?
Discuss a real world example that could, or has already, caused a shift in either the AD (aggregate demand) or SRAS (short run aggregate supply) curves for the US economy, or some other country.
Compare the additional income Microsoft makes as it moves from 20 million to 40 million copies of Vista with the additional income it makes as it moves from 40 million to 60 million copies of Vista.
The city of Morse recently completed the construction of a bridge across the Ohio River at a total cost of $133,453.95. The length of the bridge is 276,389 feet. The city of Edison three miles up river wants to build there own bridge which have to be..
Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of $85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.
Calculate the expected annualized compound rate of return over the five years for each bond. Which bond offers the higher expected compound rate of return?
If the Federal Reserve has set the risk-free interest rate at 8 percent, Illustrate is the proper current cost of this investment.
Supply curve is given by L = 20w. What equilibrium wage rate and quantity is of labour hired. What is economic rent earned by workers.
Using the information you have learned so far in this class, state what you think will cause market fluctuations over the next few years as the economy struggles to recover. What areas of the economy should be closely watched as indicators of future ..
q1. you own a small town movie theatre. you currently charge 5 per ticket for everyone who comes to your movies. your
Why all the balance of payments accounts be in surplus. What factors determine the demand for British pounds in foreign exchange markets.
Calculation of the unemployment rate and part time workers who would prefer to work full time.
What is your thought about tracking the U.S. Economy and Unemployment and Inflation.
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