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Inflation and oil prices
Suppose there is a rather dramatic increase in the price of oil. What type of inflation might this create? What impact could this have on the level of production and therefore the unemployment rate?
How many "spells" of unemployment occur each year in this economy? What percentage of the "spells" are only one month long?
Assume that a employee's skills can be summarized by the number of efficiency units she owns and the distribution of efficiency units in the population
The Lexus LS 430, the top of the line Lexus sedan, riad a base price in Canada of C$85,700 during the fall of 2005. Restated in US dollars using the exchange rate prevailing then, that price is $71,885.
Elucidate is the fiscal policy expansionary or contractionary.
Discuss how your answer relates to the income and substitution effects of a price change from Knoxville food prices to Berkeley food prices.
The firm is considering a movement of the plant to Shenzen, China where labour is cheaper. The same mathematical relationship between inputs and outputs will hold.
Is the economy of a big city more competitive than that in a small town or given neighborhood? How? Do you think your local grocer has monopoly power?
What happens to labour supply increases?-He will work more as wages increase, but only if n > 0.
Explain how are people worse off when the price level rises as fast as their incomes
What is business cycle? Describe the four phases of the business cycle. Where on the business cycle do you think the U.S. economy is today?
Government needs to eliminate the gap by changing expenditures. What policy would you suggest.
Explain how would the edgeworth box change. How would the production possibilities frontier change as a result
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