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Suppose the economy has a natural rate of unemployment of 6%
a) Suppose short-run output over the next 4 years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we wxpect to see in this economy?
b) Consider another economy in which the unemployment rate over the next 3 years is 6%, 7%, and then 4%. According to Okun's law, what are the levels of short-run output Y in this economy?
You plan to borrow $2,000 in order to take a vacation and want to repay the loan in a year. The banker offers you the following two alternatives of repaying the loan. (1) a simple interest rate of 12% with repayments in equal instalments six months a..
Explain why you would expect to see active secondary markets where shippers trade capacity and why it is efficient to allow such markets.
Explain the difference between import substitution and export promotion as economic growth strategies for developing countries. Be sure to include in your response both the strengths (benefits) and weaknesses (risks) inherent in both strategies. Whic..
In this assignment, you will examine the various criminal theories that were discussed in the reading. In a page or two, explain which theories best explain white collar crime.
The demand for cigarettes is price inelastic, but not perfectly inelastic. The supply of cigarettes is elastic, but not perfectly elastic. If there were no price controls or other complicating regulations, what would a model of supply and demand ther..
q.consider a mutual fund with 720 million in assets at the start of the year and with 10 million shares outstanding.
The control function of the federal reserve system is divided into quantitative controls and qualitative controls. What is meant by the term "qualitative"?
Provide a general explanation of how business may maximize profit within each market type.
The City of Phoenix plans to buy five additional mass transit cars for $15 million, and pay off its loan in 10 years. What would the annual percentage rate be if the city plans to make an interest payment of $2 million?
Explain an economy is initially in equilibrium at the natural level. The central bank increases the money supply.
March 2016 corn futures are trading at $3.6175/bushel. The market is “paying” producers $0.0975/bushel to store corn to July 1, 2016 (trading at $3.715). How much should the carrying charge be if the monthly storage fee is $0.02/bushel and the averag..
In my mind it is hard to imagine any competitive advantage that technologies give to business without considering efficiencies. To me, technology is meant to either streamline business processes or automated them altogether. While many argue against ..
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