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Suppose prices are determined as a simple mark-up over expected wages: p-w^e=a0-a1U
Assume further that wages are a simple mark-up over expected prices: w-p^e=B0-B1U
Use the equations above to show that when prices are different from price expectations, actual unemployment is different from the natural rate of unemployment.
Discuss the upshot of this policy in terms of a new equilibrium. Is this policy likely to have a negative repercussion on the crime rate? Can you come up with an idea concerning a major drawback of this policy?
Rachel utility function is given by U= I 1/2 , where I represents annual income in thousands of dollars. Assume Rachel is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low.
Sara's income is $12 a week. The price of popcorn is $3 a bag, and the price of a cola is $3 a can. a. What is Sara's real income in terms of cola? b. What is her real income in terms of popcorn?
Discuss and explain the nature of social and labor issues that domestic producers will likely face with their international suppliers.
A natural monopoly is caused by entry prices being high while operational prices are low. In order for company B to get into the market for processors they have to endure high initial costs which would be where most will flounder.
A recent newspaper circular advertised the following special on tires: Buy three, get the fourth tire for free-limit one free tire per customer. If a consumer has $500 to spend on tires and other goods and each tire usually sells for $50
Suppose you are manager of customer service department at a bank and you want to hire customer service representatives for a newly opened bank branch.
The Great Harvest Bread Company offers their customers quantity (or volume) discounts. Specifically, if a customer consumes 8 or fewer loaves of bread per month, then the price is $4 per loaf. But if a customer consumes more than 8 loaves of bread..
we have had periods in our history where our money has received its value from different sources. what are commodity
What monetary policies do you think caused the crisis What were the effects of the policies implemented in reaction to the crisis Do you think the solutions worked in the short term In the long term
Explain why would this be described as a Prisoner's Dilemma game.
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