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How many of the following four business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real wages? Explain your answer briefly in two or three sentences. You can safely assume that the substitution effect is stronger than the income effect.
Consider the production possibilities curve for a nation that can produce either consumption or investment goods. Describe and show the impact of each of the following using the PPF diagram.
q1. scour the national news media many good sources are available online for a juicy story in which material is at the
Suppose that you are in a committee meeting of the United Nations
Net domestic product is usually preferred to GDP by economists because net national product:
Suppose a project has two possible outcomes. There is a 30% chance that it brings a profit of 10,000. There is a 70% chance that it brings a profit of 3,600. Suppose a decision makers utility function can be described by U(w)=w^0.5. What is this proj..
Pretend that you have just been surprised with a genuine e-mail that says you have just been selected by your favorite pizza delivery company that every day for the next month you will receive your favorite pizza for lunch and another of that same fa..
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $3 per bag no matter how many bags are produced. You find out that if yo..
Based on topic of Global Markets, please post your comments on any one of the two questions. More and more companies are looking beyond the domestic market. Identify and briefly describe some of the forces that have resulted in increased global integ..
Suppose the equation for the demand curve for some product (X) is P = 8 - .6Q and the supply curve is P = 2 + .4Q. Graph the curves and label the area of the graph which represents the tax collection as TC and the area representing the deadweight los..
Suppose we have two types of consumers (for simplicity we’ll assume that there is one person of each type). They have inverse demand curves given by: What is the corresponding optimal block pricing scheme? Now suppose that the monopolist cannot tell ..
q.if the spot rate for japanese yen is 80 yean equals 1 us and the annual interest rate on fixed rate one-year
A firm has a production function given by Q=10K^0.25L^0.25. Suppose that each unit of capital costs R and each unit of labor costs W. Derive the long run demands for capital and labor. Derive the total cost curve for this firm. Derive the long-run av..
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