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1. In the short run, the percentage increase in output tends to correspond to a smaller percentage decrease in the unemployment rate due to "slippages." Explain the three slippages between changes in output and changes in the unemployment rate.
2. George Jetson has recently been promoted to inventory control manager at Spacely Sprockets, and he must decide on the optimal level of sprockets to keep in inventory. How should Jetson decide on the optimal level of inventory? How would a change in interest rates affect the optimal level of inventory? What costs and benefits will Spacely Sprockets experience by holding inventory?
When is producer surplus equal to economic profit (for either a firm or an industry)? When producer surplus and economic profit are not equal, which is bigger?
Unique creations holds a monopoly position in the production and sale of magnometers. The cost function facing Unique is estimated to be TC=$100,000+20Q a) What is marginal cost for Unique b) If the price elasticity of demand for Unique is current..
Does the result in part (a) allow you to conclude that there is a strong correlation between eccentricity andsmoothness? Explain.
Calculate the optimal amount of pretzels and soft drinks that minimizes this firm's costs and how many frames do you provide each month?
Choose one or more areaa of your relationship you would like to improve which is discussed in the course materials (listening skills, conflict management, perception, nonverbal communication, improving communication climate, etc.,
As workers become more educated, their human capital increases as does their value marginal product to firms. How do you think your education will improve the value of your marginal product? What impact will this have on your life
You enroll in a thrift plan in which you are allowed to contribute 8% of your pretax salary per year. The company contributes an additional 6%. Your starting salary is $62,500 and you can expect annual increases of 3.5%.
A rich graduates of engineering program at your University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely.
The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm's profit maximizing level of output.
How to find equilibrium GDP with various tax rates How do put these equations together to figure this outGovernment purchases, taxes and net exports are all zero.
Suppose that the economy is thought to be 2% above potential (that is, the output gap is 2%) when potential output grows 4% per year. Suppose also that the Fed is following the Taylor rule, with an inflation rate of 2% over the past year.
(Natural Rate of Unemployment) What is the relationship between potential output and the natural rate of unemployment If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment
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