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Consider now an economy where you need to search for a job. Let b be the function of people that do not have a job and are searching for one. Here active population and working age population do not coincide. Let s be the job separation. We call f the finding rate, conditional on searching for a job
(a) Write the equation describe the dynamics of those employed (E) and those who are not employer (NE)
(b) Compute the employment rate and the unemployment rate in sa Steady State. Explain how they are affected by the search rebate b
(c) Suppose that the Woking age population is 600 people, and that the finding rate is 5%, the separation rate is 2% and the search rate b is 10%. What is the unemployment rate?
(d) What is the number of employed and unemployed people in this economy?
(e) Suppose now that the search rate were 90%. What is now the employment and unemployment rate in this economy?
Assume that the inflation rates in 2010, 2011, and 2012 were 1%, 2%, and 3% respectively. During the same periods, nominal interest rates were 5%, 5%, and 6%, respectively. What are the ex-post real interest rates in 2010, 2011, and 2012?
Suppose option A has a higher variance than option B. Which of the following statements is, in general, true?
Do you agree or disagree with the statement which: A monopolist always charges the highest possible price.
Find the equal annual payment series that would be equivalent to the following increasing series of payments if the interest rate is 12% (a) compounded annually; (b) compounded continuously.
Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
A firm's demand function is defined as Q = 14 %u2013 2P. a) Use this function to calculate total revenue when price is equal to 3 and when price is equal to 4. b) What is marginal revenue equal to between P=$3 and P=$4?
q1. use the internet to research an oligopoly not discussed in the text. from the e-activity describe the oligopoly you
Illustrate what is the reorder point for part if the reorder point is expressed in terms of the inventory on hand rather than the inventory position.
Illustrate what is the smallest value of x that would be sucient to make Buck want to invest in the pinball palace rather than have a wealth of $24,000 with certainty.
If the resource prices return to original levels, but a new technique is invented that can produce.
Illustrate output quota q1 would the typical firm have to be limited. Explain how much would it like to produce.
A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a A. Mission statement. B. Corporate charter. C. Business plan. D. Corporate statement.
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