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1. In May 2010, the Reed Job Index reported that demand for new workers was growing, but wage and salary on offer of new jobs was declining. Economists argued this was strong evidence that the economy had entered the recovery phase of the business cycle.
Interpret the above information using the AD/AS model. Which curve was shifting? Which way?
2. The Canadian economy suffered two shocks in 2008, leading to the recession in 2008-2009. One shock related to rising oil prices; the other was the slump in both consumer and business confidence.
[a] How would these two events affect the Canadian price level in the short run [increase, decrease, no effect, or indeterminate]?
[b] Assuming no government policy intervention, how would these two events affect the Canadian price level in the long run [increase, decrease, no effect, or indeterminate]?
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Reinstituting a draft of military personnel would lower the military's budget. Would it lower the actual cost to the economy of the military? Is the production of other goods and services forgone by people joining the military? Does a draft change th..
One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.
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Bill is thinking of investing in a Silicon Valley start-up. His von Neumann-Morgenstern utility-of money function is U(w) = 9+w-(w^2/100) where w denotes wealth measured in thousands of dollars (thus w = 1 means $1,000). Would a risk-neutral person m..
Suppose that a biotech firm in Pittsburgh raised $113 million in an IPO. The firm received $23 per share, and the stock sold to the public for $25 per share. The firm’s legal fees, SEC registration fees, and other out-of-pocket costs were $657,500. T..
XYZ rapid prototyping (RP) software costs $20,000, lasts one year and will be expensed (i.e., written off in one year) . The cost of the upgrades will increase 10 % per year starting at the beginning of year two. How much can be spent now for an RP s..
Should the Miami plant be closed or continue to operate at a loss in the short run? How would you explain to the incorrect party that he is wrong?
When you apply conventional finish to the wood you use traditional lacquers. The California Division of ABC has changed from conventional lacquers.
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