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If the steady-state rate of unemployment equals 0.125 and the fraction of unemployed workers who find jobs each month (the rate of job findings) is 0.56. What is the fraction of employed workers who lose their jobs each month (the rate of job separations)?
Brenna's bakery makes the tastiest chocolate chip cookies in Silver Spring. Brenna sells her cookies for $5 a dozen at her store. To make the cookies she needs $1 worth of flour, $0.50 worth of sugar, $1 worth of chocolate chips and $0.25 for all the..
Home and Foreign both produce cars and food using labor and capital. In each country, labor and capital are both freely mobile across industries. It takes 5 units of labor and 3 units of capital to produce 1 unit of food, and 4 units of labor and 4 u..
An industry consists of three firms with sales of $200,000, $500,000, and $400,000. Compute the Herfindahl-Hirschman index.
In your own words, (briefly) describe the "Lucas critique", and explain how the "modern micro-founded" method of macroeconomic modeling attempts to address the Issue that the Lucas critique raised about the "traditional" approach to macroeconomics th..
The demand curve for cookies is down word sloping, when the price of cookies is $2, the quantity demanded is 100. If the price rises to $3, what happens to consumer surplus?
What advantage does a country have if it restricts or does not allow its currency to become “convertible” – this is called a “non-convertible” currency [an example is the Chinese Yuan].
Representative consumers have the utility function U(C,Ls) = log(C) + log(1- Ls). There is perfect competition in the markets (so price and wages are taken as given by firms and consumers) Write down the budget constraint of the representative consum..
q1. what are the three most important factors driving economic growth? explain briefly using an appropriate example.q2.
The objective of the managers of the Blackrock Small Cap Growth Equity Fund is to invest in common stock that pays a dividend yield that is higher than the 30 year yield on BB rated corporate bonds. True False
A firm has estimated that the demand for its product comes from two types of customers, type I and type II. Each type I customer -there are 30 of them- has a demand curve given by Q = 20 - P, while each type II customer -there are 50 of them- has a d..
One of the key features of the global economy is that wages of skilled workers have risen relative to unskilled workers in both industrialised and developing economies.
Why do Caterpillar and your parents have different opinions about the value of the dollar.
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