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A change in population:
Assume a one-time decrease in population, possibly caused by an onset of disease or a sudden out-migration,
a. Determine the effects on the labor marketplace. Illustrate what happens to labor i/p, L, and the real wage rate, w/P?
b. Use a variant of Figure 8.8 to determine the effects on the market for capital services. Illustrate what happens to the real rental price, R/P? Illustrate what happens to the interest rate, i?
c. What happens to output, Y, and consumption, C? What happens to investment, I? What happens over time to the stock of capital, K?
In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer
Country Z is a developing country that is facing problems of deforestation.
Total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions.
If the demand curve is much more inelastic than the supply curve, clarify whether buyers or sellers will shoulder more of the tax burden from a new tax placed on the sellers.
What is the short-run equilibrium price. What is the short-run equilibrium market quantity.
South Korea can produce a maximum of 600 million toaster ovens or 900 million tons of rice per year. The U.S. can produce a maximum of 700 million toaster ovens or 1,000 million tons of rice per year.
While the population variances are unknown, we will assume they are equal.
The narrator is consumed by the idea that human begings do not actually have free will. How is his free curtailed on the nadir, and how does he fight back.
The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.
All costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold.
Make sure that you consider two cases. In the first case, the consumer does not pay any tax before x is reduced, and in the second case, the consumer pays a positive tax before x is reduced.
If you are near graduation and plan to start your new job in 3 weeks, how does the Bureau of labor statistics classify you? Unemployed, employed or notin labor force.
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