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Suppose GM reduces all of its existing workers from a 50 hour work week to a 40 hour work week but does not lay anyone off or hire anyone new. How will the unemployment rate change as a result? How will the growth in GDP change as a result?
when potential output grows 4 percent per year. Suppose also that the Fed is following the Taylor rule, with an inflation rate of 2 percent over the past year. The federal funds rate is currently 3 percent.
For each of the following situations, determine whether the money supply will increase, decrease or stay the same. i. Depositors become concerned about the safety of depository institutions ii. The Fed lowers the required reserve ratio
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
All firms in a Cournot monopolistically competitive industry have the same cost function C(q) = 25 +10q. Calculate the equilibrium price, firm output, total output and number of firms in the industry.
The United States is one of the worlds, weathiest countries. Think of a recent case in which the dicisions of the U.S. governement were severely consrained by scarcity. Describe the trade-offs that were involved. What were the opportunity costs of..
Discuss some polices the United States government could take to increase United States economic growth? Name two or three and describe why these would encourage growth.
Assume that the banking system has total reserves of $200 billion. Assume also that the reserve ratio is 40 percent and that there is no currency in this economy.
What is the core issue in this interest group politics Which groups are pro limits Which groups would you imagine are lobbying against Are these peak associations or public interest groups What does Goldsmith mean by industry capture
A market total demand is given through P = 80-(z/2). This market is supplied by a dominant firm & by other, relatively "small firms". The small company total supply is given by P=4y.
As derived from the Markkula Center for Applied Ethics, which of the following should be one of eight guiding principles.Compliance with the law in every situation or else.
What annual inflation rate is implied from a market interest rate of 15% per year when the real interest rate is 4% per year?
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