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Assume that b=1 and that initially the real interest rate is equal to the marginal product of capital at 4%. As well, assume that v=1/2 and that the inflation rate last period was 2%
a. If the housing bubble busting causes the share of output of investment to fall 6% of potential GDP, what will happen to the economy?
b. If the economy was at potential before and the natural rate of unemployment is 5% what will unemployment be now?
c. What will the inflation rate be?
d. How low can the Federal Reserve lower the Real interest rate*? How much output is recovered? Is it enough to push the economy back to potential?
Suppose that Agostino's hourly wage is $30 per hour, his rental property yields $120 per day, and he has 16 hours in a day to allocate between leisure and work. Draw his daily budget constraint. How much can Agostino consume if he enjoys 16 hours of ..
Momentum treatise to the current world population growth crisis.
questionfor a labor market in a city or region assume that wages under bad times is 100 and under good times is 150.
Explain what should be the production level if fixed costs rose to $70,000 per month. what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity.
The cost of repairing the valve now is $10,000; and of replacing it is $20,000. If the criterion is to minimize expected costs, which alternative is best?
The Sarbanes-Oxley Act provides for the establishment of the _____________ to over see audits of public companies. This will be done to protect the interests of shareholders and investors.
Explain the difference between normative and positive economics. Determine which of these statements are normative and which are positive and explain why you place them in the normative or positive category.
Explain how might knowledge of organizational behavior help the company's frontline store supervisors manage their employees.
Ilustrate what is the marginal propensity to consume (MPC).
what will happen to the value of the dollar? Use the demand-supply model of the dollar to explain.
Illustrate what would be the pes0-dollar exchange rate be if purchasing-power parity holds. If a monetary expansion caused all prices in Mexico to double.
The value of the recreation has been conservatively set at$0.50 per hour. At a discount rate of 3% per year, what is the B/C ratio for the project?
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