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Why was the inflation at the end of the Golden Age so disruptive? Do you think that even without the two oil shocks it would have become so powerful a force? Without the Vietnam War? Was it "in the cards," or was it the product of these two political events?
Discuss informally how the analysis and the results would be modified if new products were produced using a combination of labor and capital.
A firm uses labor and capital as factors for a technology with constant returns to scale and strictly convex production function. A new manager, looking through past data, observed that: when factor prices were: wl = 20 and wk = 5; the firm hired l..
If GDP is $100 billion, consumptionis $60 billion, investment is $30 billion, and net exports are-$5 billion, what is government spending in this economy
Ralph wants to buy some milk and a box of cereal. If Ralph buys 4 gallons of milk at $3.00 per gallon, the box of cereal costs $2.00. If he buys 5 gallons of milk, the box of cereal is free. For Ralph, the marginal cost of buying a fifth gallon of..
Which of the following monetary policies reduces aggregate demand and output?
Suppose that the government purchases goods each year and pays for these purchases using taxes on income. The government runs a balanced budget in each period and the tax rate on income is t = 0.5. Repeat Part (a) and compare your results.
Consider a linear city Hotelling model. There are two firms, A and B, located at the (30) ends of the product space. The length of the product space is 3 and transportation costs are 1 times the distance traveled.
suppose the daily demand for coffee in seattle is qd 1000003-p2a. what is the elasticity of demand at a price of 2b.
It can be shown that the marginal return to schooling investments is MW(s) = k0 = ps. What condition governs the optimal choice of education, s*? If r= 5% and ifk 0 = 5.25, what is the optimal schooling level? Suppose that the wage-schooling sc..
A concept car that will get 100 miles per gallon and carry 4 persons would have a carbon-fiber and aluminum composite frame with 900 cc three cylinder turbodiesel / electric hybrid power plant. The extra cost of these technologies is estimated to ..
Suppose you are currently earning $15 an hour. If the inflation rate over the current year is 10 percent and your firm provides a cost-of-living raise based on the rate of inflation, what would you expect to earn after your raise? If the cost-of..
For either route, the volume of traffic will be 400,000 cars per year. These cars are assumed to operate at $0.25 per mile. Assuming a 40-year life for each road and an interest rate of 10%, determine which route should be selected.
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