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Consider an environment where an agent could be either employed E or unemployed U. Let’s normalize E + U = 1, so that E and U are interpreted as the fraction of people employed and unemployed at any given point in time, respectively. Conditional on being employed today, the probability of being fired is δ=.05; and conditional on being unemployed today, the probability of finding a job is ω=.5
a) What is the probability of staying employed? (b) What is the probability of not finding a job? (c) Suppose that we know that today (Monday) the fraction of people who are employed is 0.95, what is the fraction of people employed tomorrow (Tuesday)? (d) What is the steady state level of employment?
In the auction described above, suppose that you could entice additional bidders to attend your auction. However, none of the new bidders would have a valuation greater than $3.0 million.
q1. following the passage of comparable worth legislation unity college responds by placing salaries at w a between the
q.use the following table to answer questions a-c.output q0 1 2 3 4 5 6total costtc36 45 52 61 74 91 110a. what is the
The inverse demand that duopoly quantity-setting firms faces is p = 90 - 2q1 - 2q2. Firm #1 has no marginal cost of production, while firm #2 has a marginal cost of $30. How much does each firm produce if they move simultaneously? What is the equ..
Adding a variable input (labor) to a fixed input (capital) will result in an increase in output: As a firm adds labor beyond the point of diminishing returns: ATC and AVC get closer together as quantity produced increases because:
the city government is considering two tax proposals- a lump-sum tax of 300 on each producer of hamburgers.- a tax 1
draw the indifference curve for someone deciding how to allocate time between work and leisure. suppose the wage increases. is it possible that the person's consumption would fall? is this plausible?
What would happen if the Free Zone in central bank lowered the federal funds rate and buy securities on the open market? b-recommends that the central bank sua or lower the federal funds rate? why?
Compute the Learner index if the marginal cost of producing Lipitor is $0.30 per pill. Does the Lerner index make sense in this situation.
Consider and economy with the following production technology: Y = 9K^1/3 L^2/3 , where the aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is 1. Compute the equilibrium wage and capital return. Compute total payme..
Illustrate what is shop's sales mix Illustrate what is shop's break-even sales volume in dollars. Explain how many bicycles of each type must firm sell to earn a target net income of $50,000.
The name of the government agency that insures commercial bank deposits is the:
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