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What is the solution of the Solow model for consumption per person in the steady state, c ∗ = C ∗/L∗ ? How does each parameter in the solution affect c ∗ , and why?
Suppose the economy has a natural rate of unemployment of 6%. Suppose short-run output over the next 4 years is +1%, 0%, -1%, and -2%. According to Okun’s law, what unemployment rates would expect to see in this economy?
A monopolistically competitive firm is operating in the short run, is operating at the optimal level of output, and is earning positive economic profits. Describe how this industry will adjust in the long run.
The market allows for proportional representation of minorities, but minorities must yield to the views of the majority when activities are undertaken through government.” In your own words, explain the meaning of this statement. Is the statement ..
politicians are often heard saying that tuition at state universities should be kept low to make education equally
What are the factors determining the nominal interest rates. The real risk-free interest rate is determined in the loanable funds market by supply and demand for real loanable funds. What 4 changes (?) would shift the supply of real loanable funds..
What is the immigration surplus
q.assume you are a typical consumer and expect to work for 40 years from this point onward and to live for 10 years
Assume that this cost is set by an upstream wholesaler with monopoly pricing power.
You are manager of BlackSpot Computers, which competed directly with Condensed Computers to sell high-powered computers to businesses. Explain how will impact BlackSpot bottom line.
Explain how did racism affect foreign affairs and discuss how the United States viewed some groups and the influence of the military abroad.
Now assume that production technology improves such that average total costs decline by $5 a unit. Describe the process this industry will go through as it moves to a new long-run equilibrium.
Suppose that there is a credit market imperfection due to asymmetric information. In the economy, a fraction b of consumers consists of lenders, who each receive an endowment of y units of the consumption good in the current period, and 0 units in th..
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