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Please explain in three well-structured paragraphs the basic principles of the New Keynesian Economics and how it addresses perceived limitations to classic Keynesian theory.
Assume the demand for lettuce slopes downward-and-to-the-right and the supply of lettuce slopes upward-and-to-the-right. If there is an increase in the supply of lettuce then we would expect the equilibrium price to (decrease / not change / increase)..
You work for an unemployment agency that distributes unemployment checks to unemployed workers in California. Your boss recently learned that the Governorhas proposed a 21 percent increase in the state minimum wage, and wants you to provide her with ..
Suppose that initially the economy is in a long-run equilibrium with no money growth, no inflation, and πe = 0%. Then, the central bank announces that, starting in the next period (t+1), the money supply will begin growing at 10%/period. What happens..
Many policymakers are concerned that Americans do not save enough. Using the Solow growth model, with no technological change and no population growth, Explain why a higher savings rate will not necessarily generate more consumption per worker?
Consider the four problematic sales people (Caplan, Furness, Gibson and Eaton) at Milford. We have both quantitative and qualitative performance measures. In general, what is the value of considering qualitative performance measures and what are the ..
Tipping theory, though not new, is in the news lately, in reference to our "recession" (some say "depression"), and how we can get ourselves out of it, whatever we call it. What is tipping theory? If you've never heard of it, you may research the top..
Imagine you are tasked with recommending an optimal mix for production and pricing of a product. How would you go about utilizing economic indicators and data to make that recommendation? Please use a specific product as an example in your initial po..
Suppose that the opportunity-cost ratio for watches and cheese is 1C ? 1W in Switzerland but 1C ? 4W in Japan. At which of the following international exchange ratios (terms of trade) will Switzerland and Japan be willing to specialize and engage in ..
Using shifts in supply and demand curves, describe how a change in the exchange rate affected your industry. Label the axes, and state the geographic, product, and time dimensions of the demand and supply curves you are drawing.
Assuming the banana growing marker is a perfectly competitive market show a theoretical model explaining the equilibrium position (profit/loss situation) for an individual banana producer before bana crops were destroyed by a cyclone. (you may assume..
Give detailed answers to the following. What is money? What determines that something is money? What forms have money taken on throughout history? What are our current measures of the money supply?
Suppose there are two similar firms in a market that are strategically interdependent. Firm A and Firm B. Firm A is a larger firm than firm B. Basically each needs to determine whether to “collude” or to “cheat” in an oligopolistic market.
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