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In April 2000, the U.S. unemployment rate dropped below 4 percent for the first time in 30 years. At the same time, inflation remained at a very low level by historical standards. Can you offer an explanation for what seems to be an improved trade-off between inflation and unemployment? What factors might improve the trade-off? What factors might make it worse?
Factory workers at each plant have the same characteristics (e.g., skills, alternative employment opportunities, level of income, risk aversion, etc.). The quality of a toothbrush produced is easy to supervise but the effort exerted by a worker is..
Econ 302 Summer 2016 Homework. What is the slope of the budget constraint? Suppose that the price of good Y decreases to $4. Use a graph to show how the budget constraint changes. What is the slope of a new budget line
In the diagram for this exercise, use aggregate demand and aggregate supply curves to show an economy initially at equilibrium and identify the price level as P.
Suppose that because of a technological breakthrough a firm that uses labor and capital to produce its output is able to double its production for any given amounts of inputs. What happens to the firm's MRTS at any given input combination?
What are barriers to entry, and why are they crucial to the creation of potential long-run monopoly profits? Give an example of a barrier that can lead to monopoly.
Consider a market in which the market demand curve is given by P = 18 - X - Y, where X is Firm 1's output, and Y is Firm 2's output. Firm 1 has a marginal cost of 3, while Firm 2 has a marginal cost of 6.
In Bayonne, New Jersey, there is a large beauty salon and a number of smaller ones. The total demand function for hair styling per day is Q = 180 - 10P, where P is in dollars. The marginal cost function of all the small salons together is SMCF = 4..
If the Federal Reserve wants to keep the annual inflation rate constant at 1 percent, and the average growth rate of real GDP over time is 3 percent per year, how fast should the money supply grow on average over time to achieve the target inflati..
Government wants to increase its spending. How big increase in G can government afford if it does not want investment to fall below the level found in part A?
Describe and derive an expression for the marginal cost (MC) curve. Why would marginal productivity decline when you hire more workers in the short run after a certain level?
Is this game like a prisoners' dilemma or different in some crucial way? Explain. Which country would benefit more from a free-trade agreement?
The national highway traffic safety administration.raised the average fuel efficiency standard to 35.5 miles per gallon for cars and light trucks by the year 2016. The rules will cost consumers an average of $434 extra per vehicle in the 2012 mode..
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