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In 2008, the price of oil rose sharply on world markets. What impact would you expect there to be on the aggregate price level and on real GDP? Illustrate your answer with aggregate demand and supply curves. What would you expect to be the effect on interest rates if the Fed held the money supply constant? Tell a complete story.
At any point in time, what are the feasible consumption allocations between the young and the old consumers who are alive at that point? Given the preferences, which allocation is optimal?
Suppose that the production function is Y= 9K^0.5 N^0.5 With this production function, the marginal product of labor is MPN= 4.5K^0.5 N^-0.5. The capital stock is K= 25. The labor supply curve is NS= 100(1-t)w]^2, where w is the real wage rate, t ..
Characterize the competitive equilibrium, and show that it coincides with the solution to the optimal growth problem.
What is your view on this?
e. Suppose that full employment equilibrium willoccur at Y = 4000. What kind of gap exists f. How much will government purchases have toincrease or decrease to reach full employment equilibrium g. How much will taxes have to be cut orincreased to ach..
Is water in the Great Lakes a public good, a private good, or a common resource? What are the goals of the compact? How might they be achieved?
Draw a typical stress-strain curve for concrete. From this, how would you determine the dynamic modulus of elasticity and the different types of the static elastic moduli? Typically, what are their magnitudes for a medium-strength concrete?
Draft the source selection criteria that might be used for evaluating proposals for providing laptops for all students, faculty, and staff at your college or university.
Explain the meaning of dualism and dual societies. Do you think that the concept of dualism adequately portrays the development picture in most developing countries? Explain your answer.
Draw the demand curve and the supply curve for Maine lobsters. What are the equilibrium price and quantity of lobsters?
With no government involvement in college education, how many students enroll and what is the tuition? Calculate the deadweight loss created.
A person who thinks the public sector is too large? How does the "ratchet effect" affect anti-inflationary fiscal policy?
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