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Use the following equations for labor supply and labor demand, to answer the following questions. L stands for labor and w stands for wage per hour.
Supply: LS = 450 + 3w
Demand: LD = 600 – 6w
If the country has a minimum wage implemented of $17 per hour, what exactly will happen to the economy’s levels of employment and hourly wage? (be sure to attach numbers to these; calculate them)
If this economy were an open economy with a flexible exchange rate, would the usual crowding out forces be supplemented or offset by forces from the international sector
Growth without diminishing productivity of capital suppose that the production function is Y=AK. What is the condition for the growth rate of capital per worker, ?what does the s*(y/k) curve look like? What are the growth rates of capital and output ..
In the 1960’s a group medical practice (Health Insurance Plan or HIP) undertook a large scale randomized trial to evaluate the effectiveness of mammography. The researchers followed the subjects for five years and recorded the number of deaths due to..
q.smith and jones are stranded on a desert island. each has in his possession some slices of ham h and cheese c. smith
Why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective? Respond to at least two of your classmates.
Three major causes of inequality of income. Describe what the primary factors are that lead to poverty. We have learned there are two solutions to reduce poverty. We could expand welfare and redistribution programs, and make taxes more progressive. C..
What is the value of the covariance between the initial investment W0 and the investment value at the end of the month W1? Are those variables independent? Compute E[W1], Var(W1) and sd(W1).
suppose the yield to maturity on a 1-year bond is 6 percent. Everyone expects inflation over the year to be 3 percent, but it turns out to be 5 percent. What is the nominal interest rate on the bond, the ex ante real rate, and the ex post real rat..
What technology available to produce your product suddenly improves. You should note whether the scenario indicates a shift of the curve or movement along the curve. You are a supplier of widgets.
Before entry, an incumbent earns a monopoly profit of Pm = 10 million. If entry occurs, the incumbent and an entrant each earn the duopoly profits Pd = 3 million. Suppose the incumbent can induce the government to require all firms to install polluti..
If the goverment of Langkawi decides that it cannot wait for the economy to self-correct in the long-run, what policy action could it posibaly take now? what trade offs,if any, will it have to be prepared to make in term of economic outcomes?
In 1988 the US gross domestic product (GDP) increased to $4.90 trillion at year end, from the 1987 year end level of 4.54 trillion in actual escalated dollar values. In the same year, the consumer price index rose approximately 4%. What was the const..
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