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A certain country has a very centralized collective bargaining, under which wage bargains are applied nationally. This country is thinking about adopting a bargaining structure that is more decentralized so that wage bargains will be made at the individual plant or firm level.
How would you expect decentralization to affect wages and unemployment?
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
An economy is facing inflationary gap shown in the accompanying diagram. To eliminate gap, should the central bank use expansionary or contractionary monetary policy?
Describe the point elasticity of demand with respect to advertisement
According to Jeffrey Sachs, Illustrate kinds of development assistance can make a difference in Africa, and what role does he anticipate for the developed world.
Explain how does the marginal price for a product like this differ from a product like automobiles. What relevance might there be to this difference.
Assume we refused to sell goods to any country that reduced or halted its exports to us.
Illustrate what are the arguments in favor of trade restrictions, and what are the counterarguments. According to most economists, do any of these arguments really justify trade restrictions.
If there is an increase in the government budget deficit _______. the demand for loanable funds will increase, interest rates will increase, and the amount of borrowing will increase, the demand for loanable funds will decrease, interest rates will d..
Elucidate how does the subsiquent impact on the housing industry.
Utilize an elasticity concept to elucidate each of the following observations.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee.
Current machines have a 5 year life and were purchased 3 years ago at $1500000 - Invest $1 Million in upgrade costs to extend the life of the machines for another 5 years - Savings in labor resulting from upgrade, $300000 per year in 1st year doll..
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