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Unemployment rate (LUNEMP):
A key variable to assess the performance of any economy when an economy is growing, the unemployment rate will fall as job creation increases and in turn this will impact positively on GDP. For this project, the correlation between oil prices and unemployment will be observed, with the aim of analysing whether an oil price shock would lead to more unemployment as might be expected to happen as oil is a major element of production in certain industries and asthe production costs increase, businesses may have to reduce costs in other areas, such as labour. The data is in the form of the unemployment rate of the UK. This is calculated as follows;
Changes in Money Market Equilibrium A shift in either the supply curve for money or the demand curve for money will alter the equilibrium position in the money market (and the
Suppose the demand for guitars in State College is given by Qd = 9000 - 12P where Qd is the quantity demanded, and P is the price of guitars. Also, suppose the supply of guitars is
What is productivity? Productivity or average product (AP): It is output person which is output divided through number of workers AP= Q/L. There labour Productivity can
ABSOLUTE ADVANTAGE
Illustrate the policy - Beggar my neighbour 'Beggar my neighbour' policies are government policies which attempt to gain a competitive benefit at the expense of other countries
Assume the marginal propensity to consume = .8, and government purchases increase by $.2 Trillion. 1. Potentially, how much will real GDP increase in the short-run after the inc
Derive the following equilibrium for the IS-LM model:
A company is considering two types of water heaters. The associated costs are shown below. The estimated annual cost of operation for oil heaters equals 365 x 41045/EF x Fuel Cost
Explain the pre-emptive monetary policy Since 1992 UK monetary policy has been 'pre-emptive'. In pre-emptive monetary policy authorities announce that they are prepared to rai
Suppose A can somehow change the game in problem 5.1 to a new one in which his payoff from Up is reduced by 2, producing the following payoff matrix. a. Find the Nash equilibriu
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