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The natural rate of unemployment is 6%
(a) Suppose short-run output over the next four years is falling and is at the levels of +2%, +1%, 0%, and -1%. According to Okun's law, what unemployment rates should we expect to see in this economy?
(b) Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. Use Okun's law to solve for the levels of short-run output, Y, expected in each year.
Suppose c = wL + rK and q = L 1/3K 1/4 and perfect competition in all markets. Find the demand for labor and capital and the supply of q. If p = 8, w = 1 and r = 2, find the quantity supplied and the profits.
Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply. As a part of your comparison, indicate which of these theories developed the concept of a Liquidity Trap and what th..
Discuss the effects on this year's quantity of labor supplied,
Illustrate what will happen to the price of bonds also to money holding if the Fed changes the interest rate as a result of a decrease in the money supply.
In 2000, years prior to the growth of organic and natural food, Kellogg’s acquired Kashi Com. By 2008, Kashi sales had grown 24 times! By 2014, Kashi’s sales were down 17% from their peak. Further, it was determined that its cereals contained GMOs re..
The most likely reason that oil prices spiked during 2007-2008 was because
Find an example of a merger that has been in the news within the past 6 months. What is the economic justification for the merger? Are there any antitrust concerns with the merger? Is there a role for government in regulating this merger?
Elucidate why or elucidate why not. Does it matter whether the inflation is expected or unexpected.
In the course of conducting a valid stop and frisk for weapons, if the police officer discovers evidence of another crime for which an arrest is proper, the officer:
A mechanical engineer who recently graduated with a master’s degree is contemplating starting his own commercial heating and cooling company. He can purchase a Web Page design package aimed at delivering information only for $1,500 per year. what is ..
What is the circular-flow model? There are two different loops in the circular-flow model. What is the difference between the two loops? Does the circular-flow model describe reality exactly? Describe one way that you or your family interacts in the ..
Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Create a graph that shows how the payments are divided between interest and princip..
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