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Consider an economy with the production function Y = L ^(1/3)
a) Derive the Labor demand Curve
b) If Labor supply curve is L^s = ( w/p ), calculate the equilibrium levels of real wage, labor and output.
c) Assume M^s = 45 and K = 3. What is the equation of the aggregate demand curve for this example? What is the price level? What is the nominal wage level?
d) Show equilibrium in labor market / output market / money market by using the graphical analysis of "The Complete Theory of Aggregate Demand and Supply"
How much the quantity of a good traded changes after a shift of the supply curve depends on the size of the shift.
Consider again an economy with the usual required reserve ratio (rr); economy-wide checking (demand deposits) of $400,000; total cash within banks of $100,000; cash held by the public of $36,000; and er = 0.16. Calculate the "real-world" multiplier.
Proposals to raise the minimum wage rate are often opposed with the argument that such a move would not only cause an increase in the unemployment rate but would also hurt the very people it is intended to help. Is there any validity to that argument..
How would I compare also contrast McDonald's strategies in China with those of Wal-Mart in Mexico.
In which of the following cases must price always fall?
Merchandising What is the difference between a service and a merchandising business? Provide an example of each. What are three new types of merchandising accounts?
In a small open economy with a FIXED EXCHANGE RATE, the central bank buys foreign currency in the foreign exchange market to prevent a depreciation of the nominal exchange rate.
Investors commonly use the standard deviation of the monthly percentage return for a mutual fund as a measure of the risk for the fund; in such cases, a fund that has a larger standard deviation is considered more risky than a fund with a lower stand..
Discuss a situation in which both parties entering into a contract could benefit from slightly ambiguous language contained in the agreement.
Churdle Corporation makes a single product. In a recent period 4,080 units were made and there was an unfavourable labor efficiency variance of $26,800. Direct labor workers were paid $8 per hour and total wages were $190,000. The labor rate variance..
We also observe that the proportion of workers receiving disability benefits is much lower in the US than in the latter two nations. Are these findings consistent with the work-leisure model.
An old, fully depreciated asset (defender) has O&M cost of $1,500 this year, and these will increase by $1,500 each year. The current salvage value of the asset is $4,500, and this is expected to decline by $750 each year.
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