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Suppose that an economy has the Phillips curve
(a) What is the natural rate of unemployment?
(b) Graph the short-run and long-run relationships between inflation and unemployment.
(c) How much cyclical unemployment is necessary to reduce inflation by 5 percentage points? Using Okuni´s law, compute the sacrifice ratio.
(d) Inflation is running at 10 percent. The Fed wants to reduce it to 5 percent. Give two scenarios that will achieve that goal.
Elucidate " "Clearly explain the factors to consider as your "fixed factor" and alternative short term and long-term decisions. Submit your analysis in a one to three page paper. "
Jerry bought a house for $400,000 and made an $80,000 down payment. He obtained a 30-year loan for the remaining amount. Payments were made monthly. the nominal annual interest rate was 6% after 10 years (120 payments) he sold the house and paid the ..
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
A cubic total cost function is expressed as TC=a+bq+cq^2+dq^3 if a=0 b=400 c=-50 and d=5 then. What are MC (Marginal Cost) and ATC (Average Total Cost) respectively equal to? At what output levels are MC and ATC respectively minimized?
What is the amount of excess reserves in this commercial banking system? What is the maximum amount the banking system might lend?
Gatekeeper models of MCOs require patients to see a primary care doctor before going to see a specialist. What two key economic principles would be involved in a successful gatekeeper program?
Compute a 99% confidence interval rather than a 90% confidence interval. The increase in confidence indicates that we have a better interval.
Suppose that demand for good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?
Many factors affect the demand for a product, which is a concern for management and the decision-making process. To correctly assess the demand for their products, managers must determine the effect of all relevant variables. Discuss how these variab..
If the labor force of 150 million people is growing by 1.4 percent per year, how many new jobs have to be created each month to keep unemployment from increasing?
Illustrate what effort level would maximize profit per period. Illustrate what is the maximum profit per period in this fishery.
Describe how the limited self-interest of humans impacts their ability to maximize their welfare. If you project into the future, what effects can be foreseen on future generations?
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