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Which of the following contradict (s) the classical explanation of the economy?
1) Voluntary unemployment
2) Frictional unemployment
3) Full employment
4) Search unemployment
5) None of the above
Define the union wage gain and the union wage gap. Why should we care about the magnitude of the union wage gain? Why should we care about the magnitude of the union wage gap? Under what conditions will the union wage gap provide a reasonable est..
Government consumption in our model is simply a "waste", that is it does not affect anyone's utility or affect the production process. Use the Pareto Optimality framework. For each of them,solve the social planner's problem and show the equations ..
General Electric discovered that the marginal product of magnesium a variable factor in manufacturing of light bulbs will lead to the eventual decline in output as the use of the magnesium is increased. This illustrates what economic theory
David Hoffman purchases a $1,000 20-year bond with an 8 percent coupon rate (annual payments). Yields on comparable bonds are 10 percent. David expects that
Given the choices of world real interest rate in the above graph, the world real interest rate that most likely occurs when this country runs a trade surplus
Elucidate the elasticity of demand given the price and income combination.
Use the following supply and demand functions to answer the questions below:
In 1995, the FED began announcing its interest rate targets immediately following each meeting of the FOMC. Prior to that, observers were left to draw inferences about Fed policy based on the results of that policy. What is value of this greater o..
What is one significant consequence of fractional reserve banking Banks are vulnerable to "panics" or "bank runs." Banks can only lend an amount equal to its deposits. Banks hold a portion of their deposits in gold. Banks can serve the withdrawals..
Then list one good reason to allow tire imports and one good reason to restrict tire imports. Give a short explanation for each reason.
Suppose you bought a bag of groceries at Food Lion this past September for $46.54. Calculate the price of a similar bag of groceries in 1999 prices if the CPI
A growing economy means that the economy is producing more and more "stuff", either because it has more resources (workers), or uses those resources more productively (smarter, better workers, working with better machines and systems).
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